I can only assume that some timing values have been changed in the Lion Airport client. I have a new (mid 2011) MBA with Lion preinstalled. The Airport connection would cycle on and off (greyed out icon), sometimes giving 20 second bursts of connectivity with a minute or two between them, with a Linksys WRTP54G router running WPA Personal. I discovered a few things:
iStumbler, Kismac and some other wifi diagnostics don't run on Lion (some of them start, others run for 10 sec and terminate).
802.11b and 802.11n don't work well at all, 802.11g works better (longer times between dropouts). I have some 802.11b clients, fortunately the Linksys "mixed" mode seems to work and the MBA reports an 802.11g connection.
I had my beacon interval set to 1000 msec. This resulted in frequent missed beacon timeouts that force the Airport client to rescan, dropping the connection. Reducing it to 100 msec as described solved the problem as far as I can tell (maybe it needs to be shorter still). This is clearly a bandaid as the Airport client shouldn't time out so quickly. Now it just does an "opportunistic roam" every few seconds (which is certainly more often than needed) but it doesn't drop the connection while doing this.
bugreport.apple.com seems to be down today (earlier, it said there was a website error, now it just doesn't answer) ... perhaps a few people are barking at them about this...