Yes, and there isn't that much performance gap. Not even between 15W i7 and 28W i7.
Oh ok, so now you are an analyst. No. Apple is not erasing Mac lineups, they will keep selling Macbook Airs like they still do with the old non retina Macbook Pro. But they will probably (in bold, because it's not a fact, and you neither should talk like if you knew it as a fact) focus only in Macbook and Macbook Pro, and that means not redesigning/upgrading the MBA. Rumours point that way, but again, nobody knows.
One thing is for sure: the new Macbook puts the Macbook Air inbetween two sides where it doesn't shine in anyone: it doesn't perform as good as a MBP, has that much ports, but it's neither as portable & light as the new Macbook. Yeah, it's something I don't like since it was great as it was, it just needed a retina display. But well, that didn't happen.
So it makes sense that Apple goes for a new 13/14" Macbook to replace the actual 13" MBA (the 11" was already replaced by the 12" Macbook).