I yearn for an updated version of the 12” MacBook with modern specs and keyboard. The 13” Air is way too large to be the smallest MacBook ;_;
I saw a review of the MacBook Neo where the reviewer was yearning after the 12" - but suggested that Apple has made UI elements so big with such ridiculous spacing and border radius that it would be almost unusable at anything less than 13".
Which would not surprise me in the least - I struggle with my 16" MBP and this crappy UI "framework".
Native resolution on a 13" MacBook Air is already pretty unusable. Out of the box, the 13" MacBook Air (physical screen resolution 2560x1664) is configured with display scaling so that the “looks like” resolution is 1470x956 (i.e., macOS renders everything at 2x1470x956 – 2940x1912 – and then scales it down to match the display for output). If you dial the “looks like” resolution down to 1280x832 (so that the rendering resolution matches the output resolution; because, say, you prefer that every UI element not be a little bit blurry from being scaled down), you'll find yourself unbelievably short (ha) on vertical resolution. You basically have to turn dock hiding on. Even then, fixed-position headers are very common on websites these days, so between that and browser chrome, you'll often find that actual webpage content is crammed into the bottom half of the display.
In my experience, 13.3" MBA is fine for many applications. A little smaller (eg 12.5") might still be usable. 11" would not work with current MacOS.