The $999 base model does not have a sluggish processor.
For those of us looking to upgrade, it's smart to watch review videos and pay attention to performance data. Unfortunately it appears many are losing sight of the real world performance differences between the i3, i5, and i7 processors available on the 2020 Macbook Air.
Yes, it's true that the i5 upgrade is available for $100 and it does offer 2 additional cores. However, please note that while cpu benchmarking tools show a measurable multi-core performance improvement, that does not mean that the performance witnessed in usage will directly correlate to the indicated benchmark percentages, especially when taking into consideration the limitations of the Air's cooling implementation.
Additionally, the base i3 model is frequently offered at a significant discount in comparison to a custom ordered i5 model from Apple. Many suppliers offer the base i3 model for $950 and at times as low as $900 USD. Individuals will have to assess whether or not the $100 (and potentially $150 or even $200) upgrade price is worth the incremental increase in performance.
Let's not lose sight of the main benefit every 2020 MacBook Air purchaser receives, especially those of us upgrading from older systems. The new magic keyboard, the 10th gen CPUs and their improved graphics, and the faster low power memory are massive improvements to the vast majority of users.
If you have a real need for the additional cores and graphics of the i5 and i7 upgrades, by all means buy them. But let us be clear here, the available 2020 Air upgrades are not as significant as some historical upgrade offerings, such as going from 4 Gb of RAM to 8 Gb of RAM.
For my primary use cases of browsing, video playback, and writing software, I'm sticking with the base i3 model from a reputable retailer for $950. I'm certain it will be a massive upgrade from the 2013 Air I'm currently using. I'd rather save that $150 (or more) to upgrade to a new system sooner rather than marginally increase the processing power of a 2020 Air.
Besides, I can't be the only one who really wants to purchase an iPad-oriented MacBook with a permanent keyboard can I?