Although it shouldn't be shocking that the new Air model would replace the Plus, Apple might have handled it differently given the excitement surrounding the speculated model and the addition of the Air to the iPhone lineup.
Ultimately, the majority of sources indicate that you will receive an OLED 120Hz ProMotion screen along with 8GB of RAM to utilise Apple Intelligence capabilities. However, as Apple is only able to provide a single 48MP camera on the back, the cost must be determined with its own criteria in mind.
However, the main issue with the Air model's size is how much battery Apple can fit within it. Additionally, the fact that it is an e-SIM model implies that its availability will be restricted to a few areas. As the year progresses, there will undoubtedly be additional upgrades on this gadget.