Yes, it's not the best display on the market but calling it terrible is just hyperbole.
Than the Pro, yes. It's about the same price as other ultrabooks with 1080p or better IPS displays, though, especially if you bump up the e.g., RAM.
Basically, I'm not willing to pay a premium for a 1440x900 TN panel.
The 13" MBP is 1.57KG and 18mm thick. The macbook air is 1.35KG and 17mm thick. The battery life is really the only differentiator when it comes to portability.
>The Pro is bigger than I want
Unless you have an 11" (I just can't get my head around using a screen that small) then I seriously suggest looking at the pro again.
They did improve graphics performance a lot through software updates, and the generations after the first 13" retina MBP are supposedly a lot better still... That said, I'm holding off upgrading my 2010 MBA until Broadwell which will have an even better IGP...