If you consider that the MBA's competition then I argue it's no contest.
Think about it this way. That thing is at least $800. The refurbished rev A Macbook Airs are going for $999. For about $200 more you get a machine with better performance, aluminum versus cheap plastic, OSX versus XP, real software like Garageband versus crapware and trialware, a beautiful backlit keyboard versus a junk crammed keyboard, and multitouch versus a cramped and smaller trackpad. And you get something that looks like some real design and thought has been put into it instead of just cramming industry standard parts together.