The A* series needs less power and smaller batteries save money and weight.
A new battery on a new manufacturing production line and new testing isn't necessarily cheaper. It probably isn't going to be the case that they can just re-use an old iPad battery.
As for less weight, folks on a very tight budget probably don't care as much as cost.
Rosetta will be on its last legs anyway when this ships. Also, the A* Series might not have the hardware emulation silicon optimizations for Rosetta 2. I could see it go either way.
Rosetta is being downsized, not completely terminated.
" ... macOS releases – through macOS 27 – as a general-purpose tool for Intel apps to help developers complete the migration of their apps. Beyond this timeframe, we will keep a subset of Rosetta functionality aimed at supporting older unmaintained gaming titles, that rely on Intel-based frameworks. ..."
Learn how Rosetta translates executables, and understand what Rosetta can’t translate.
developer.apple.com
If this was only being released
after macOS 27. At this point the A18/19 Pro dies are bigger than the plan A1/19 dies. So it isn't going to be hard to put extremely slightly more functionality onto the die.
Crossover also depends upon Rosetta core underlying layer , but doesn't depend upon "high level" macOS on Intel libraries. What is likely being dumped is the "glue" for the macOS libraries.
Rosetta is also used for Linux binaries. Again no macOS library code maintenance really needed. So if other folks want to spend money on their libraries, it seems Apple is open to that.
I see it is as a convenient market segmentation, but this is why it was low on my "likelihood ranking"
The basic icons and GUI design that Apple uses now presumes 'Retina' at this point. the basic experience isn't going to look good dropping Retina.
kneecapping the ports is more Apple's style. They could just strip "Air" off the name and leave it Macbook. Backslide a port to 10Gb/s ( and perhaps a second port to far worse).
Restarting production on a panel that Apple hasn't bought in 8-10 years would cost money. I'm not sure there is very high volume, generic PC market panel that matches up with Apple's display resolution presumptions. Apple has used their own ecosystem to drive economies of scale for their own resolution selections.