I have been keeping an eye on that as well. Very surprising to me and my fiancee (who wants one badly) indeed. Once we hit certain financial goals, we want to grab one up either the current model or a new/updated one.
The thing I see happening with the Air deals with Intel's chip not being a special order, and SSD tech coming down in price, along with that 1.8" SATA drive that was introduced months ago.
A faster Monteniva based Air is what I really hope for, no new ports, no more USBs or FW or 3G/EVDO or anything, just a speed bump via the CPU, GPU, and HDD. I wish for a $100 price drop but I am not holding my breath.
If the update isn't as amazing, then I will do the usual and buy refurbished, possible a 1.8/80 model. I do think the Air is selling well. It's a very nice light fully useable notebook that makes this TZ lover scratch his head and have a hard time deciding which one.
As for it being closely related to a netbook..... it's just not. Even the hybrid books that are just netbooks with big screens aren't that close to the Air, they are more the bridge machines with the Air and TZ at the top.
I love carrying around my 17" MBP and it does fit anywhere I need it, but I wouldn't mind having a smaller lighter notebook to toss around here and there for writing, note taking, meetings, etc. An Air is too much (especially since the fiancee will already have one) so I either take her old 12" with dim screen, or I grab a Dell Mini 9 for $350 or splurge and get that new Asus (a netbook with big screen)