Sony Z's start at $1799... start at.
I believe Apple could have upped the ante on the Air if they chose to play in those pricepoints but the fact remains that they are looking for volume out of the Air, not the niche that it was back in 2008.
And the notion that just because something is running older hardware doesn't mean that it's poor hardware. The Air is loaded with exactly what Apple needed to get the experience (and price) they wanted out of the Air.
It's the PC mindset that makes someone instantly scan the bullet points on a product. Does it do this? Does it have that? When instead they should be asking, how do I use a computer and will this product fill that need?
Let's face it, the Air is the smallest and most affordable OS X capable laptop. And OS X is why people buy Mac product anyway, hence the Sony/Dell/Asus/Ect comparison is moot.