Macbook Pro 13 inch with Retina vs Macbook Air 13 inch

Hi everyone, I just have a few questions regarding the two Macbooks listed above, here is my situation:

I am going to be a Freshman in college next year and have decided to purchase my first Macbook. I am familiar with most Apple products but Macbooks are the one area I do not have experience in. I have done some research and have widdled my decision down to either the Air or the rMBP. I am looking at the entry level of these laptops, so both would be equipped with the regular 128gb SSD drives and the 1.8GHz and 2.5GHz proccessors. My budget would not be more than the cost of the rMBP, so upgrading to anything more than $1,399 is not really an option.

My uses:

Basic Word processing

Web surfing

Video streaming

Music and picture storage (nothing more than 10 gigs)

Video and Picture editing with the Adobe Suite (this is my biggest concern, how will both computers react to the software? Which would handle it better?)

Now I know everyone has seen posts like this before but the difference is with the recent update in pricing. Now that the rMBP is $1,499 (with a $100 discount for education it will be $1,399) is it a better deal? Is the performance and retina display worth an extra $200? I have read rumors that the retina display causes some slow down in operation for the rMBP.

Lastly, if I decided to purchase the Air, should I invest in the upgrade to the 256gb SSD or maybe purchase a cheaper USB 3.0 external hardrive?

Thank you for your time and consideration, it is really appreciated!

Cameron