I have thoughts on the Air and all other iPhone models: They're too large. The iPhone 4 was perfectly sized and we have the technology now to build a super powerful phone of that size. I simply don't use my phone for anything that requires a larger screen. Smaller screens also encourages better UI design.
Exactly this. And the profit would be huge compared to any Mac. I suspect Apple dropped it just because they're making even more from selling oversized and over-specced phones.
Yeah, they probably lost almost zero customers by cutting the mini from the lineup. The people buying iPhones, in my experience, tend to just pick another iPhone. So they could simplify manufacturing, testing and so on and still sell the same number of phone, just more profitable ones.