Tiny countertop (often convection) ovens (including, but not limited to, ones marketed as "toaster ovens") are very common, but a lot of them are under powered for their size compared to those markets as "air fryers", as well as having other design differences. And they existed long before air fryers, which needed to differentiate themselves from them.

> The only issue is that people may get misled into buying an oven sized air fryer which defeats the whole point since their advantage is that they are a much smaller oven.

Actually, I think it’s probably going to be pretty common for people to have multiple convection ovens / air fryers and use them for different purposes. The “whole point” of an air fryer is not the size: the convection oven + cooking basket setup has fairly great utility at all sizes. Yes, an oven with a powerful heating element relative to size is going to have the added advantage of coming up to speed faster, which has some additional utility. Yes, the particular design of the cooking pot + top fan you describe (or the InstantPot models with air-fryer lids that interchangeable with the pressure cooker lids) have some unique utility (“pressure cook & crisp” for certain recipes). But ones the size of a typical microwave (or combined with a microwave, as some are now) or a typical full-size range oven also have unique uses that smaller ones lack.