OK is there a huge difference in speed between the i5 processor and the i7? Is there a wow factor between the two or not really that much difference?
Dependable on how you use it probably not much, if you are just using it for email, browsing, the occasionally photoshop-video apps you should be OK with the i5.
If you choose the 4 GB model you most likely run into problems within a few years, with a lower specced CPU not so much, it should still work.
But, as I said before it depends on what you're going to use it for.
Going to buy 13 inch Air. What would give me the best speed, i7 processor or 8 gigs of Ram?
A windows computer with an SSD doesn't exactly slow down either.
Also, I beg to differ. Macs do slow down, albeit not as dramatically as some people who (abuse) their windows computers.
So all the... it used to wake up INSTANTLY, now takes up to 10 seconds! What's wrong with my machine?!!!
It depends on how long you put it to sleep.
For up to an hour, everything stays in RAM, so wakeup is immediate.
After an hour, or when your battery is really low, the Mac writes RAM to the SSD drive, and then turns off the RAM, to save battery power. That way you still have most of your battery power after the Mac is turned off for a week. Now if you wake it up, memory has to be read back from the SSD drive which takes a few seconds.