I agree with you that the 11" MBA is a machine that is limited in what it can do compared to other Macs that exist. but I would argue that "the masses" do far less than the average person posting here, and it would be a fine computer for them. I'm one of "the masses" and I don't even know what Final Cut Pro 7, Logic Pro 9 and Motion 4 are. Well, yes I do, but I'm trying to make a larger point -- these are not programs that I need to even come NEAR in my computing life, nor do my parents, nor do my work colleagues. We need word processors, we need web browsers, we need someplace to store pictures and music, we need to send emails, and we occasionally need a program to edit photos to make them smaller so that we can post them on Facebook.
For me and for people like me, the MBA is perfectly fine as a main computer -- maybe the lack of storage is a issue, but then again, I have a 30GB iPod that is only half full. I have a 13 inch MBA that has 45 out of 128GB unused. Not everyone carries around every song they own or picture they've ever taken.
I've been reading Macrumors for a long time now and I love the site, but sometimes I think that the people here get wrapped in a bubble. They think that any computer that can't run Giggity Pro X, that doesn't have the fastest and the best processor, is "limited" and therefore undesirable.
People post here every day wringing their hands about whether they should buy X, or Y? when they will never need the amount of power that they seem to crave. How can I say this so definitively? Because if you KNOW FOR SURE that you need 8 gigs of RAM or faster processors or a great deal of storage space in your normal workflow, you wouldn't have to ask "should I buy X or Y?" *You'd already know.*
Thinking that "the masses" care whether their computer can run Final Cut Pro and a bunch of processor-intensive programs at the same time, is bubble thinking. I assure you, the masses out here don't care. We are not the exception. The posters here are the exceptions.