I think you're ignoring the best option for your needs. The MacBook Pro with Retina Display is surely much better for browsing, reading PDFs, and watching videos because of the sharper display. You already admitted you don't need the upgraded processor/RAM and you are totally right. I own a 2012 i5/4 GB Air and performance is never an issue, and this is a two year old computer.
The MBP might have issues but users on here are overly obsessive about their Macs and exaggerate the extent of their problems. It's the reason why some people have no issues yet others can't seem to escape from faulty products. And even if you do have problems with it, there's nothing stopping you from taking it into the store to have it inspected. You mentioned that you "would only be upgrading for the screen" but that's the factor that will make the most difference based on your usage.
I know the screen will be much sharper but I really do not want to mess with the quality control issues that people have been dealing with (screen peeling due to cleaning which is so common the Apple Senior Advisor even warned me about it, yellowing of screen, image retention, and UI lag)
I am super OCD and have been to hell and back with the problems I have had with my MBA. I wont be able to run back and forth from the Apple Store and ship the computer after shipping my Air 4 times to Apple. I want a computer that works without any issues and that is why at this point i am shying away from the Retina despite it's better screen which would undoubtedly help me since I am on my computer so often
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I would push for the computer that's at the same price point as the computer you original purchased was.
Assuming you didn't already come off as very knowledgeable, I would feign ignorance. This base model is .3GHz slower than my computer, etc.
The Advisor is pushing me to buy the Pro (and justifying it with his supervisor by saying i am upgrading to a model that would handle my needs as much)
He said that I would be given credit for the baseline Macbook Air 13 aka $999
But when i talk to him, after my loan comes thru (and after WWDC) I will definitely link the articles that show that for the most part an i5/8GB Air is VERY close in performance to a i5/8GB Pro Retina in almost all tasks.
If i buy a 13" with 8GB of Ram i would only be paying $100 for the upgraded Ram and $183 for Apple Care so just around $300 total out the door with taxes and such. If i go with the 11" i would basically just be paying $200 ($183 for Apple Care and the warranty)
I dont need to feign ignorance because it still comes down to his manager if they are able to give me an upgrade. As I said they really want me to upgrade to the Pro so I can spend the extra $300 aka $600 total. But if i am spending $300-350 with the upgraded Ram, a mStand which i plan on getting and the Apple Care maybe they will push the upgrade thru.
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Well the 13" has an SD card slot and longer battery life...
(which is why I can't make up my mind between the two... love the form factor of the 11" but annoyed about the missing card reader)
The battery life doesnt really matter that much to me as my MBA is plugged in about 100% of the time since I have two chargers in each room where I use the MBA.
The SD card reader could be a big thing for you to consider but for me i have never used it once in 3 years. I have a 1TB HD i purchased for $40-45 from Staples and it's USB3 and I use that and keep my MBA's HD about half full so I really dont care about the lack of SD / lack of a bit of battery life
What is really concerning me is the supposed inferior keyboard (less key travel) on the 11 and the sacrificing of 1.4" of screen size