It doesn't replace it as in "is the same thing, just upgraded".
It's supersedes it. In the future, it will Macbook and Macbook pro -- the Air in its last legs, and it's just still sold for the profit, not as the direction going forwards (like e.g. the Mini is).
>Mac Airs were more expensive when they initially launched, but afterwards they moderated for much of their time int he $1200-$1500 USD range. This is way way less than what's on offer from a Macbook.
Doesn't matter. New product line is just more expensive. A product doesn't have to be in the same price range to replace something else. Just to cover the same niche ("lightweight machine for less-cpu-hungry-users").
The MBP with touch strip also replace the old MBPs (even though some old MBP models are still sold) and they are also higher in price than the machines they replace.
>Lastly, regarding the Macbook itself, the screen size is too small. This is a toy for a more niche use case.
The "big screen" was never the MBAirs point. The "lightweight, very thin" was. In fact, there were 11" MBAir models as well. Compared to them, the Macbook with 12" screen sits right in the middle.