With educational pricing I was able to get your same configuration for $1,416. Plus you should get RAM from someone other than Apple.
This is the lowest I've ever seen the entry level PowerMacs. My 2002 single 800mhz Quicksilver was $1599 without educational pricing, and that was a stock system (standard video, combo-drive, RAM). You can almost max out this new model and still stay below the old baseline price.
If I hadn't upgraded my machine so much already, I might think of just selling it and buying this model. I think I'm going to go for a dual 1.3ghz upgrade though and stretch its life out a few more years. That's the strange thing with Macs: I have some kind of emotional attachment to it where I'd rather just keep upgrading it than buy another, especially since it was my first Mac, aside from old 68ks and Performas I acquired second hand.