Exactly! The M1 MacBook Air was the most affordable Mac laptop on the market at the time of its availability, yet it was smaller and thinner and more lightweight than the first two Intel MacBook Air generations!I would disagree simply because the M1 MBA proves it. Right now, Apple has made the deal with Walmart to continue to exclusively sell that laptop at the price of $699. Meaning Apple still manufactures it and has the margin to still make it profitable. Same way Apple is able to sell the current iPad at $349. Apple can get these products to be cheap, typically by reusing older parts that are more outdated from their higher end models.
Now if you want to say a modern 12” MacBook would start out more expensive than a MBA then I could agree with that, but I would say that after about say 2 or 3 years it would be able to reach that theoretical $799 price. The unique thing here is usually when Apple introduces a new form factor they start expensive to recoup all the R&D costs, but the 12” MacBook is not a new form factor, they manufactured them for about 5 years already, so it’s technically an old design now. So that will allow them to be able to get them cheaper right out of the gate. Because Apple already sold the 12” MacBook for an expensive price to recoup all those costs, so the money has already been spent and made. Obviously they have to design a new logic board, and with my potential different display to accommodate thinner bezels, I could see them starting out more expensive, but I absolutely think that after time it would be able to get down to be their cheapest laptop. Because again, the M1 MBA proves it that it can.
Not only that, the M1 MacBook Air had significantly more horsepower than its Intel predecessors. This is why when I was finally able to afford replacing my older MacBook with a new model, I opted for the M1 Air, attracted by its lower price, the power being nearly up to par with the M1 MacBook Pro (especially with the 8-core graphics and 16 GB of RAM like mine) and the growing third-party software support for Apple Silicon Macs.
Though years from now when I'm ready to replace my M1 Air (like nearly a year after the newest MacOS version drops support for it), I think I'll opt for a 14" MacBook Pro (with the regular chip; I still plan to get a Mac Mini desktop with a Pro chip for home use).