I like how the 11" inch seems to have all the right things in it, and is a step beyond the netbooks because MBA 11" has a full version of OS X.
To make this already great computer better would be to reduce the price and perhaps lure people on the fence with that and mid-high end PC ultraportables from Sony or Lenovo or other major makers which can be in the $700 dollar range. I saw a pretty decently configured Sony for $999 in a very small form factor but it offered more in terms of RAM, HDD space, ports, and processing power. It was slightly heavier but still an ultraportable laptop.
I think Apple would see a pretty big jump in sales if they could offer the MBA 11" with a price of something in the neighborhood of $929 or so, and with whatever Sandy Bridge processor would reasonably fit into it in that price range.
This recession has affected everybody, even the traditionally deep pocketed, hardcore Mac user who is willing to pay a third to a half more to get a Mac. To stay competitive, have an idea what the public is putting at the top of their list, whether it's quality and speed, or more of something that is still good but is affordable.
Apple Inc. is now a big enough company to reach into the moderate price range and compete head to head against the Sonys and Lenovos of the computer world in that very competitive arena.