Isn’t the MacBook Air already pretty cheap at $999?

$998, $997, etc.

A couple more examples would have been nice; it took a while to understand your point.

Competing at high end budget PC laptop will increase market share, but more importantly it’d be an easy recommendation to make when people see a lower priced PC laptop. Rumours were $699.

Sure but the one he's referring to is rumored to cost $599-$699.

Considering inflation $999 is cheaper.