In terms of price, I'd expect $749 with edu at $679. This would be consistent with MacBook Air 13/15-inch stack pricing.
I'd expect 8GB and 16GB memory options, just because it helps Apple so much in terms of margins.
Using the 2018-2020 MBA chassis will save in dev costs. Apple saves money compared to M1 because they need a smaller heatsink, fewer voltage regulators, and smaller battery.
Honestly, I suspect a large portion of MacBook Air customers could switch to this low-cost MacBook without even noticing any difference.