It's rumored they've kicked it around, but the 12" didn't sell all that well last time, and they apparently decided the 15" Air was worth prioritizing over a new 12".
The cause of low sales may have been because of one port and very underpowered, including getting too expensive JUST for portability and “Looks”.
Butterfly keyboard..depends on the person and typing style. Have two butterfly laptops (2015 & 2018 models) with no issues…
As far as design…beautiful, light, easy to carry. Ivy did a wonderful job with it’s “looks”, but very weak insides.
But…the design concept inside was good..everything on a single small board and the rest battery. Nightmare to fix, but overall concept was good.
Why sales were low (probably):
1. Main reason: price high compared to what you got - only good for internet and Office/iWorks. Too expensive for just that.
2. Underpowered and just one port. You cannot run a projector or non-Apple monitor all day with an adapter.
Logic board is so weak that you cannot have power going into the adapter while using HDMI out- have to use exclusively on laptop battery: bad for concept/usage for a portable.
One port…ok if it is thunderbolt 3 or 4 and include MagSafe on the other side.
3. And the nail in the coffin (mileage varies): the butterfly keyboard. I personally don’t mind it, but can’t type all day on it - hands get tired.
As far as the “notch”. - just put better camera in it and call it a day. The one currently in the old models is just “ok”. Put the camera that is in my MacBook Pro 2018 with no notch and that is plenty good enough.
“if” Apple put a “M” class chip in it with a few touch-ups on design (non-butterfly keyboard)…my dream laptop!