Okay trying with what you said. While I'm doing that, one question. Should I use your USB Inject All kext? I did try but did not make a difference.
Not sure how old DSDT will work because Sleep was not working with it, which is what this is all about.
Now there is No MacBook Air 7.1 or 7.2. There is a MacBook Pro 7.1, but that is Intel Core 2 Duo while I have an i5 processor. So if you can please clarify that. I'm keeping my SMBios for now and trying with older DSDT (though not sure how that will help).
EDIT : Like I thought it sleeps and resumes immediately. Only difference now is that display does not come on, but fan comes on. So it is pretending to sleep but not really asleep. If I could ask you to check if your laptop is really sleeping? The good news - USB does work , but like I said laptop really didn't sleep