It's probably going to depend on what you're doing, this new Air isn't intended as a power house. Most people will probably be fine with the new Air, adding the 16GB Ram will probably help as well. Personally i just need a new Mac for long writing sessions, web browsing, email, iTunes/TV Shows and movies, Netflix, some editing in Photo's app, Final Draft and so on. I also have a 2017 iPad Pro that i use for more intense photo editing with apps such as Pixelmator and i do use a 2012 iMac my main desktop, granted its an old machine but it still runs fine and will probably last until i upgrade either next year or when Apple decide to do a redesign.
I think most people who buy the Air are students, teachers and people who generally don't need a lot of power but do want/need more battery life, the new Air delivers that with the 12 hours for wireless web and 13 for video playback.
We will have to wait and see what this new Air benchmarks at, i remember when the 12" MacBook came out and people were complaining about its processor and were just generally down on it, that turned out to be a good machine for those who wanted it, there were even videos of people editing in 4K on it. In this case i will receive judgement until bench marks and reviews start to drop