I agree with most readers that the MBA update would not happen today.
Its always nice to dream/hope.
But realistically what could one reasonable expect in the near term anyway. Current processor is at the end of the line, and next generation Sandybridge is a couple of months away at best, 1st Q 2011 at worst.
No the C2D is the prior generation of processor. In advance of SandyBridge there are already Core i5 and i7 ULV chips that could be used in an updated MB Air. Other manufacturers have and are already introducing laptops built around such chips.
I simply don't understand what you're looking for in an update. Haven't they already packed in everything they can with the rev C? What are they going to change that they could actually make money off of? Nothing I say. The new macbook air was the iPad, get used to it. All niche markets are filled, there's nothing else to do.
Well upgrades in terms of storage, memory, etc are long overdue.
When you compare the MacBook Air to the rest of the current Mac line up it languishes behind every other model in all aspects apart from size. This is a product that is supposed to be a halo product and which costs a premium over other models.
When you are paying a premium for a computer but get something that is beaten in every aspect apart from size then it really isn't an attractive prospect and doesn't stand out as a halo product any more.
One of the points of the MacBook Air was to show people what Apple could do compared to everyone else (Dell, HP, etc) Well when it was introduced it did that but having been neglected there are a number of manufactures that have models that now match the MB Air in a number of ways or even beat it. The MacBook Air has not taken any real steps forward since the Rev B was introduced 2 years ago and even that just dealt with the issues that existed with the original Rev A.