Does the MBA now have a Kaby Lake CPU?
No, Apple is still using the 5th generation cpu. If you look under features, one can see it there. It's truly unfortunate as this is a great little laptop that desperately needs attention. It has turned in a red-headed step child of Apple
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Personally, I think Apple should redesign and completely update the Macbook Air. I would love to see new colors, smaller bezels, a retina display based off of IGZO, increased ram and horsepower (cpu), along with 13, 14, and 15 in. sizes. Apple could market it to students and enthusiasts to differentiate the product line. Sorry, the base rMBP 13" doesn't do anything for me.
2018 will be an exciting year in terms of cpu and memory, particularly storage. Coffee Lake will be out, supporting either LPDDR4 or 3D XPoint, and Cannon Lake, based on 10 nm, will be out as well. Intel is already making huge changes to their road maps and pushing the release dates of tech up thanks to AMD and Ryzen!