I have an M1 Pro for my work computer, and it's transformed my sense of what I think I can get away with for my next personal machine. Previously I would have just maxed out specs for the chip to what I could afford. My MBP M1 is so good at what it does that I'm now seriously considering just getting an M3 MacBook Air. Still a little annoyed they ditched the wedge shape.
All of this to say that the M1 MBA at $699 feels like an amazing deal. I don't really have a need for one, but it feels like they're giving them away.
For Macs, I have long bought the slowest processor, but increased storage and RAM.
It's the storage and RAM that are potentially limiting on this offering (and I don't even know if Walmart lets you choose upgrades there, but Apple always charges unbelievable amounts for them).
I think even being a few generations old the CPU is likely to actually be fine for quite a while, even for some (but not all) specialty uses (like development).
All of this to say that the M1 MBA at $699 feels like an amazing deal. I don't really have a need for one, but it feels like they're giving them away.