Get the SSD definitely. I was in the same boat as the OP. I bought the 1.6 Air with SSD because that was all I could "afford" and when it arrived I changed my mind and went for the 1.86 with SSD and couldn't be happier.
Come on OP stop being a cheapskate, you KNOW you can afford the extra $200.00. If you've got the money to buy an Air and you're already spending over $2000.00 then an extra $200 is miniscule. This Air is an ultra portable machine and although it's the fastest ultra portable on the market that extra 260 Mhz can still make a difference so in this case it's best to get the fastest.
I realized I was being a cheapskate too, I honestly thought I couldn't afford it but in reality I just didn't want to give Apple all of that money but if I'm spending $2000+ then I can spend an extra $200 for the top of the line.
Don't try and convince anyone here that you can't afford an extra $200.
I agree that for the extra $200, it's less than a ten percent increase on an already very expensive computer. As a processor calculation only, the 1.6 is 86% as fast as the 1.86 (1.6/1.86=86%). And the 1.6 GHz costs 92% as much as the 1.86 GHz when calculating in the SSD ($2299/$2499=92%). So, for 8% less money, you get a 14% slower MBA. That would tell me the speed difference is a greater percent than the cost to upgrade. That would tell me as a "value" the upgrade is yielding a higher percentage of speed difference than the cost to upgrade.
If keeping long term, it will be worth it for time saved over years of computing. If planning to upgrade as soon as the rev C is released, the 1.86 GHz will have a higher resale value. So, if just being "cheap," think about the upgrade. If really cannot afford it, and you must make a decision between SSD and 1.86 GHz, the SSD is going to make the MBA a much faster computer.
Cheers... and good luck with your decision. The truth is any way you configure a rev B MBA, you are getting a really nice computer.