Yep. $300 Atom netbooks with Win7 run Flash better than $1,300 Air.
But it's difficult to blame Adobe. Apple is the real source of the issue as it's so closed when it comes to low-level access to hardware.
Finally a few months ago Apple gave h.264 low-level hardware access to h.264 acceleration from the GPU to non-Apple apps. This allows Adobe to finally get some access.
With Windows, Adobe has been given full reign to run the hardware as best as possible. Here's a real story for you. Install Windows 7 64-bit on your MBA and do not use BootCamp. Just go in and manually install the drivers, then let Windows update everything. One will find 4x+ the performance of Flash on Windows as opposed to OS X, and this is on the same exact hardware.
It is easy for some to blame Adobe if they just hear the typical Apple fans who don't really understand the situation. However, this is all on Apple. I believe it was Apple's move to allow this finally as it gave up on the Mac and decided it would fight its battle solely on iOS in the future. Sorta like Apple trying to show some goodwill to the justice department and anyone looking at its attempt to completely control everything.
It is in our worst interest to allow Apple to continue down this path as consumers. However, if it were my property, I would do what was best for my company too, and that brings up more points for debate.
Going back to the Air running cooler. I have a Core Duo 15.4" MBP I bought for my wife as she just needed a Mac and doesn't care at all about the software, performance, and etc. Anyways, while "playing" with this thing I literally burned my legs. Not a joke nor a lie, it was hot and it actually burnt my legs. I left it there too long, and I really had burn marks on my legs. I have never experienced this with an MBA. I think the heat comes from the thinness in these Mac notebooks. Apple is simply going too thin. More air inside the case would allow these to cool much better.
I hope the new MBA feels cool, but my rev 2,1 MBAs always ran very cool anyways. Now there are many other Mac notebooks that aren't so cool running, and the MBPs are a big heat factory in my experience.