Yeah, you don't need it.
If you constantly work on your iPad and use it as utility outside maybe.
But for the 1% of times you think you'd need it, just use your phone.
Isn't it easier than ever to do hotspots with OS X and iOS devices? Like zero configuration? I bought the LTE iPad with the same mindset, but you have to pay for another data plan for the off chance of using it (at higher rates than for a good cell phone plan) and pay $130 LTE antenna tax. It's ultimately not worth it IMO for the rare chances that you need it, and when you do the slight inconvenience of tethering is really not that bad.
The LTE is more of a business-oriented model, imo. Have to be flawlessly online all the time, can't afford to be arsed to tether to the phone, and can afford an extra data plan? Go LTE.
Yes, supposedly (at least they mentioned) you can activate tethering from other Apple devices now without pulling your phone out.
Okay, I think you guys have convinced me to go for the Wi-Fi model. If I really can't stand missing LTE (which is hard to really imagine), I will just sell it in a couple of model years instead of hanging onto it for 3+ years. Now I just need 2GB RAM to be real.
If you're going with 16GB, then it's definitely worth considering the first Air. Wait for teardowns to see if it has 2GB of RAM or not. If not, then consider that you can get a refurb 16GB Air for $340. Depending on your use case, it might be a better purchase. At $400 though, I wouldn't consider the Air over the Air 2, since touch ID and the camera are worthwhile updates. At $340, that decision is more difficult.
Personally, I rarely play demanding games on my iPad. Demanding games are often not very suited to touch controls. My favorite experiences on the device are 2D and would benefit very little from the updated hardware. I'm happy with the original Air at a steep discount.
Do keep in mind that Apple does supposedly amazing refurbishment since they always replace all outer parts, including metal shell, screen, etc. along with new charger and plain box. So in their Refurbished & Clearance store the 16GB Wi-Fi Air is down to $339.
I believe I've read people mention these are sometimes even just used for a week and pristine returns but Apple automatically replaces the outers anyway (in case they would have not noticed a scratch or if it had been engraved) and sends the screen and shell for potential recycling or repair at their convenience.
That said, I've never bought refurbished, so I don't have first hand experience.