Seems to be the expected relatively small refresh, mostly just adding the M5?

The language towards the end of the press release implies to me that they're targeting last-gen Intel MacBook Air users thinking about upgrades more than anyone with an M2/3/4 MacBook.

Yep, seems like an expected spec bump. M4 to M5, base storage bumped from 256GB to 512GB, price increased by $100.