I have to disagree.
The entry laptop crown should have gone to the 13" MBP with its DVD drive and extra ports. This will ease people into the Apple ecosystem more than Macbook netbook.
Also, not everyone likes the high resolution/small screen of the air whilst the 13" MBP screen is far better for most people.
A lot of young people really don't buy CD's anymore. If they do, they don't keep them, they just rip them. They hardly buy any DVD's and never rent them. They either download them (il)legal or they watch on the internet.
And they literally take their laptop everywhere, to school, to a friend, to a party. I'm getting old, I know, (I'm 37) but I was at a birthday party of a nephew. I couldn't make it on the "family day" so I got their while his friends where there. There where 8 people in the room and 8 smartphones but 11 laptops. Don't ask me why, I have trouble enough working one, so I must be getting old.
So if you're hauling around that laptop every day and you have a tiny dorm to live in, small workspaces at school, an 11" laptop with SSD, but a full sized keyboard and nice performance is what you like.
OTOH My parents had a white macbook and used the DVD drive just a few times, certainly not more than 5 times in the 4 year life of the macbook. They, however will never buy a 11" screen, its just too small, so for them the 11" is out of the question.
When I asked them what new laptop they wanted (they didn't know the price, just the features, I paid), they didn't choose the MBP in any size, they choose the MBA 13". Reason is simple, it's much lighter, the display is much nicer, the battery time is really good, if they ever wanted a drive, I have a superdrive (I live nearby) but most important was that it was soooo much faster than the HDD in the MBP. And that the display does have more pixels and gives smaller letters doesn't bother them: they increase every letter type to 140 (or so it seems to me, I think it is 14) just like they did on the macbook. It just looks a bit sharper on the 13" MBA. And I know you can choose an MBP with SSD, but that will cost you $1449 for the 128Gb drive, where the MBA 13" costs 1299. Or it is 1849 for the 256Gb SSD MBP but $1599 for the MBA with 256Gb.
So I think for some the 11" is a perfect entry level laptop, but for some other people it might not have the features they like or need. And then is $1299 a lot of money.
Note that Apple's $999 Thunderbolt display that will ship early this fall is a little like a "dock" for new Thunderbolt-equipped Air (or Pro). It has gigabit Ethernet and Firewire ports, and sort of transforms your MacBook Air into an iMac at home (sans the optical drive).
That's the plan I have: a super small very portable notebook for when I'm on the road and a super-huge display with thunderbolt, firewire, USB and ethernet for when I'm in the office!