What do we mean by "integrated graphics" here? That GeForce 9400M on the Air isn't really upgradable; The Air's not one of those huge honkin' Alienware laptops with the replaceable graphics cards.

From Apple's website:

With a new integrated graphics processor, MacBook Air changes the game and just about everything you do with it.

And the Air starts at 1799$ whereas most most netbooks have base configurations of ~400$.

+touchscreen