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Sunspot: "they've actually exited the sub-$1000 market with these latest iMacs at a time when other vendors are offering PCs for less and less."
For some reason nobody's reported that simultaneous with the new iMac Apple has made the $599 mini now standard with a 120 gig hard-drive and 1 Meg of memory (up from 80 and 512) for the same price. Ditto the $799 mini with the Superdrive. So they haven't exited the sub $1000 market completely.
And truth is, most semi-affluent Americans don't really care about a couple of a hundred books if it means having a computer they don't have to fool with as much. I'm a lifelong (since early 80s) Apple user who's never used a PC much, and colleagues at work who hate computers constantly come to me with problems to solve on their PC's. These folks without computer aptitude would all benefit from the Mac operating system, even if it was only 5% easier to use.
Apple touts the hardware because Americans are used to thinking they have to buy stuff based on the specs. People buy cars based on how fast they can accelerate 0-60 even though the differences mostly don't matter at all.