With the current cooling system, the i5 runs about 30% faster (with all cores pegged) than Intel’s 1.1GHz spec. My guess is that that’s what Apple targeted.
But the Air’s really not the ideal machine for 3D rendering, video transcoding or other CPU-intensive workloads that are going to max all the cores out for any appreciable length of time. If that’s your requirement, there are much better options than an entry level laptop with a 10W quad-core CPU.
It’s not as if the Air would really run much faster anyway, even if it had a higher performance cooling solution.