Hi LJBunny,
Thank you for reaching out to Microsoft Community.
Is it even compatible with a Macbook Air? >> Surface Arc Mouse requires host to support Bluetooth 4.0 or higher. Please check if your MacBook Air supports this Bluetooth version.
can the cursor be moved with the touch pad instead of actually moving the mouse? >> No, the plane on the mouse is for scrolling (vertical and horizontal) functions. Mouse has to be move to move the cursor.
How customizable are the settings and is the tracking decent? >>> For customization on the mouse functions or buttons, you need to install the Microsoft Mouse and Keyboard Center. I'm afraid that there is no compatible version of the center for IOS devices. Thus, without the Microsoft Mouse and Keyboard Center installed : it will only allow you to use its default settings.
If this answer your question, we highly encourage you to inform our Community by clicking on Yes or marking my post as an answer. This will help other members who may have the same issue as you. Otherwise, don't hesitate to update us so we can further assist you.
Kind Regards,
Marrion Y.