The new MBA 13 screen is 1440x900, a nice step up from the 1280x800 that 13-inch MacBook users have been used to.
For web programming it is fine. Reddit was programmed on a 13" MacBook, after all.
If you're doing Xcode development I might still be hesitant. The rapidly upcoming Xcode 4 environment is one large window and seems to put smaller screens at a significant disadvantage. It's probably okay, but I would really want to see it running.
I generally am using 8 to 10 Spaces desktops at a time, with several of those desktops running multiple windows. With Spaces and Expose I find it good enough on a 13" screen.
Bigger is always nicer, but the tradeoff is that it would be a lot harder to carry my laptop with me. I prioritize mobility.
I only use 2-3 Spaces (to separate work from chats and distractions). I find it hard to split up "work" into multiple Spaces when I need to look at all of my work at once (ex. need reference docs + code up at the same time).
I guess it depends. I worked on a 13 inch MB screen for three years before getting a 15 inch MBP. I am much happier with the 15 inch. This is mostly because I use vim with 4 to 6 split screens at the same time.