THE MAIN reason to buy the MacBook Air 11.6-inch is NOT because it is cheaper, but because it is lighter and smaller. Apple should make an even lighter (400 to 600 g) and smaller (7-inch) MacBook Air.
No way. Something that small would require a reduced size keyboard which is terrible. I have a 8.9" netbook with a reduced size keyboard and it is easier and faster to type on my iPad.
If they do anything with the 11.6" they should either reduce the screen bezel or increase the screen size in the same size frame.