The Air would seem to be the perfect notebook for over 95% of people. It's basically an iPad Pro with an attached keyboard in terms of performance and the iPad Pro is phenomenally overpowered.
Even updating to the top of the line specs gets it to ~$2400, which is still not bad for a high end ultra light computer.
I have the original M1 13" MBP and the biggest benefit is the battery life improvement, but the M2 Air negates that entirely.
All that being said, this computer should have just been called MacBook, unless they have a replacement for the 12" MacBook in the works.