The current MBA is fine, except it is just too heavy to carry around comfortably, not really in the class of ultra-portables. If they can get the weight down to close to 2lbs, then the lineup would look much better, and there would be more legitimate separation between that and the MBP.
I want to buy a new macbook to replace my 2013 11 8gb Air, which has been great for the last 7 years. I tried the new M1 13 Air, liked everything about it, apart from the extra size and weight, especially the taller height of the screen.
I just love using an ultraportable, which sadly the M1 13 Air is not. So I hope Apple decides to make a smaller form factor again. The Apple silicon is perfect for the quiet fanless design of the 12 Macbook.
Maybe a redesigned M2 13 Air with smaller bezels will become the new ultraportable in the lineup.