I understand people being disappointed, but really the costs of some of these components are up there too.
I believe Apple did exactly whatever it had to to make a $999 entry MacBook Air possible. The costs of adding another 64 GB of NAND Flash is pricey. Look at the iPad or iPhone with such NAND amounts. There are additional costs of a hundred dollars to go up 16 GB of NAND in the iPad.
In addition, this is going to be really fast and there's the innovation and research and development costs attributed to it. Now, the MB, MBP, Mm, iMac, and even Mac Pro will definitely get the NAND Flash, but there is a lot of cost with what Apple has done. It's a great benefit.
In addition, everything else about the ultraportable 11.6" MBA is really competitive vs. alternative ultraportables. And there is a Mac OS X premium or "tax" with it. In addition, Apple is now getting used to gigantic margins on its consumer devices. I would guess that Apple did its research and found that the magical $999 price point was more important than releasing a 128 GB NAND Flash MBA at $1199. Would you have been happier if that's the starting price? That would be acceptable too given the track record of the MBA.
Let's face it though, Apple has seriously repositioned the MBA. In addition, Steve Jobs made it very clear this is where the entire Mac notebook line is headed. I expect to see lower prices with those updates and lower spec machines there too. The important thing is they have made great strides improving the user experience through innovation. It does come at a cost. While you can find alternative computers with same CPU and RAM amounts, you cannot find other computers with this kind of technology.
In addition, Apple really answered Sony's X series Vaio with the new 11.6" MBA. If one looks at those specs, they start at $1299 and are comparable to the higher end 11.6" MBA. However, Apple got in at a lower price point for everyone that wants a real Mac OS X computer that they can take anywhere... and it will be a great second computer/Mac for starting at $999.
I like the decision to come in with a $999 price point, and I feel the upgrades are still very competitive. Look at what has happened to the MBA over time.
Original
$3099 64 GB SSD, 1.8 GHz C2D CPU, 2 GB RAM
$1799 80 GB 4200rpm HDD, 1.6 GHz C2D CPU, 2 GB RAM
V 2,1 (October 2008)
$2499 128 GB SSD, 1.86 GHz C2D CPU, 2 GB RAM
$1799 120 GB 4200rpm HDD, 1.6 GHz C2D, 2 GB RAM
V 2,1 (June 2009)
$1799 128 GB SSD, 2.13 GHz C2D CPU, 2 GB RAM
$1499 120 GB 4200rpm HDD, 1.86 GHz C2D CPU, 2 GB RAM
V 3,1 (October 2010)
$1799 256 GB NAND Flash, 2.13 GHz C2D, 4 GB RAM
$1599 128 GB NAND Flash, 1.86 GHz C2D, 2 GB RAM
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$1399 11.6" 128 GB NAND Flash, 1.6 GHz, 4 GB RAM
$1199 11.6" 128 GB NAND Flash, 1.4 GHz, 2 GB RAM
$999 11.6" 64 GB NAND Flash, 1.4 GHz, 2 GB RAM
I think when looking at the big picture, the value has gotten better and better. Whether people want a lower cost super ultraportable traveler as a secondary Mac, they have a great $999 capable Mac. With 320m, it can even drive a 27" LED ACD.
If people want a higher end MBA, for the same money as the last model, get 2X faster NAND Flash and twice as much which is costly, the 4 GB RAM everyone needed who wants 2 OSes running, and the 320m GPU which will further set apart the MBA from other ultraportables that have Intel's IGP.
I like the deal, and when considering it over time, it seems like a bargain to me. I felt like Apple was going to take this the other way, but I am happy to have everything I need. I believe future updates will give back more BTO items we want and allow us to get even more for the same money.
I do understand wanting more than 64 GB storage, but that's high-end expensive NAND Flash that turns on instantly, and it's not a 4200rpm HDD that is slow as can be. It includes a nice CPU, an incredible GPU, and a RAM upgrade that should suit the vast majority for $100 more. Great buy if you ask me.