Size is always at a premium with any full power laptop. Most netbooks don't count in that determination because they are seriously underpowered compared to the other models each manufacturer offers. The Air has a slightly less powerful build than the other Mac offerings, but it still beats the pants off every other netbook on the market. There are similarly priced, and speced laptops from Dell (Adamo), but the price on those models is way higher than the Dell Mini offerings.
It still is a lot to pay for a laptop in my eyes, but so are pretty much all Macbooks. Mac isn't cheap and if you haven't figured that out yet, perhaps you need to look elsewhere for a computer.
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