For a low-cost option, I wish they could just bring back the 12" Macbook model, and stick in an M2 or M3 chip in?
Going on a limb, Apple is using the Chromebook approach for an all-cloud and light apps approach. Except we all know Apple will never release a dirt-cheap Macbook Air product.
So we're not looking at a cheaper Macbook Air with a smaller screen that runs off iOS/iPadOS, we're looking at a base regular iPad with a built-in keyboard/trackpad. I'd guess the starting price won't be less then $500.
Buying last year's discontinued/refurbished Macbook Air will always be a better deal to me.