iPod Touch and iPhone cover that gracelessly enough for me. (its not a poke at those products, its just my feeling about them)
The air is big on its footprint. It will not fit in my wife's purse or my motorcycle bags without problems of being at an angle or in a weird position or sticking out of it horrible awkwardly.
I want something small, yet full OSX on it. I want *a* keyboard, just not something full size. I want a full 16:10 (or there about) screen format larger than the Touch/iPhone can or will do.
I want to be able to use and do everything I do from my "full size laptop", please do not limit my choice.
The Air is nice and light... that is not the demographic I fit into. I fit into the about the size of a half sheet of paper in footprint demographic. I want something very portable and small, but full featured. At this point the Dell Mini9 with OSX on it works and fits this demographic. It looks good, performs all the OSX stuff (purty eye candy) well without any glitches and I use it a lot.
I'm sorry you feel that Apple doesn't need to enter the market... but did you see the price point I said? $600-700 for a netbook sized machine is NOT the cheap point. I know you said that netbookers are looking for cheap and only cheap... yet why do those "same couch surfers" buy then iPhone and iPod Touch? (I know why, it was a rhetorical question Peter)
I honestly think the $600-700 range is the next perfect high profit center for a small laptop to be and Apple could very easily make and sell a product in the 10"-11" compact market right now and they would sew it up without even trying. If they can do a 12" for under $1K, then this is easily do able for them.