If Apple had been able to price the base retina MacBook at $799, they would have almost certainly killed the Air (or put it on life support). At $799 it beats the base model Airs in nearly every spec except CPU (and ports obviously).
True. The Air's had a good run though, its ROI for Apple is likely way in the black. So, no big loss. A similar thing happens when an automaker introduces an all-new mid-size model...it often cannibalizes sales of an older, more expensive full size model. If the rumored 14'' rMB comes along (with additional ports and power), Apple will likely phase-out the Air anyway, or maybe they'll keep an inexpensive base model available for students.
Let's face it, the current 12'' rMB is basically one step up from an iPad, featuring additional power/memory and a keyboard in place of the touchscreen. Granted, it runs a full OS which is capable of greater productivity. Still, to me it's not worth $1300, or $800 more than a base iPad. An improved 14'' version...yea, that I find an interesting alternative to a more powerful 13'' rMBP, and IMO is worth $1300.