yeah it is a huge let down to me, especially at that price. Might as well go for the 15 or the 1440x900 air, as it is also 8GB of ram and 128GB ssd and is $400 cheaper.
Needed to be 8GB minimum (16gb configurable), and with at least a quad core if no discrete GPU, with a 256gb minimum SSD. Then it would have been OK at that price.
A dual core 2.5GHZ i5 ivy bridge? really? I am sitting on a 2 year old 2.3Ghz i5 sandy bridge 13" Mac Book Pro, which is UPGRADEABLE TO 16GB of ram from 2 years ago... not much progress IMO from that machine in 2 years.