The screen on the MBA sucks. It always has, even before the advent of retina. It was washed out and blurry when it came out, and it still is. No surprises here. I still bought it
The trade off is obvious: long battery life and a crappy screen or short battery life (maybe more weight) and retina. I'm happy either way, because there are benefits to both. I have no interest in touch screens on my laptop (thanks to the brilliant Apple trackpad + gesture system), so I guess that is one point in Apple's favor no matter which way it would have gone.
Just having spent the entire day without an outlet (I haven't taken the charger out of the house since I got the MBA) I am currently liking the choice that Apple made. This is great, and if I want to read a novel or something, I'll just use my iPad. Now that has one heck of a beautiful display.
Before we jump further into whining about how awesome retina is - google retina screen fatigue