There's two ways to look at things I think.
#1
Is the new MacBook Air an exciting product? Does it have it's advantages, and will people be willing to pay what Apple is charging? I think the answer to all of those is yes, and I think this machine will do well.
#2
Does the MacBook Air clarify Apple's strategy at the bottom of their market? Is it clear which computer those who don't have demanding needs should buy? Absolutely not, and I think that's the thrust of this thread. In that sense the Air is a bit of a let down.
Now I think the situation with #2 will change in a few months when Apple updates the MacBook. Apple is changing direction here, and it's going to take them a bit of time to get all the pieces in place. I'm guessing we're either going to see a redesign or something else that makes it stand apart from the Air. My guess is that we'll see an even thinner MacBook, with CPUs that are at the very bottom of Intel's offering in terms of performance. This will become the machine where Apple will try to shave every measurement possible to get the smallest, thinnest, lightest machine they can. And with that will come compromises that may not be for most people. In other words, the MacBook will be come the niche ultra-thin. MacBook Nano anyone? Finally, I bet once that happens we will see the MacBook Pro w/o touch bar discontinued.