Apple won't fail if they start off on the low end, I can't imagine anyone is thinking that as we know CPU in the dev kit is performing very well. What will be disappointing is if the Apple CPU is only in the low end from day one as it will continue to push this perception that ARM is only for the low end machines. A halo machine with the best of what Apple can do with ARM(That is more than just matching the current crop of Intel CPU's) is what I am sure a lot of people are looking forward to seeing. We already had Lightroom and Photoshop demo'ed... they aren't for a MacBook Air.
Agreed. Perhaps we’ll see not just a MacBook but a ‘Mac’ too (successor to the iMac) to show the beginnings of the journey that they are on and how it will scale up on both form factors.
This must all be costing Apple a fortune though and you can’t blame them for starting off with the model that will sell the most - and start to show a RoI to investors immediately.