it's sad that people have to do stuff like this. Steve Jobs must really be a moron if he thinks that the pattern they're keeping up with is going to work. It's great that they're cutting prices... but it's not enough. The entry-level machine is still too much. Apple should have kept the G3 iMac around, upgrading it some to have Radeon graphics to support QE, and with new optical drives... and sell it cheap. Their marketing ensures that people will get something with a G4 if they think they need "power".
A headless G3 iMac? Even better! I always saw Apple releasing a tiny box about the size of a Sega Dreamcast. It's got a single rear-mounted USB port, three front mounted ones. two front mounted FireWire ports, the optical drive on top, opening like a walkman, and either a VGA or DVI port on the back, along with sound in and out. Put a 40 or 60 GB drive in it, and give it easily upgraded RAM, using normal DIMMs, and you'll have somethin' there... oh yeah... sell it for $300.
But it'll never happen, 'cos Apple don't get it! They too stupid!
Oh yeah, not to mention the upgrade pricing for OS X. You think they could sell an "update" edition for $75 or so. Hell, even MS does that!