G(x) is Apple's moniker in reference to generation of Power Macintosh
"Talking 'bout Mac Generations..."
The Gx series moniker as used by Apple refers to the generation of "Power Macintosh," describing the computer model generation. Apple secondarily named the CPU (not the PowerPC chip) after the machine. "Power Macintosh G3" means third-generation Power Macintosh, not G3 CPU Power Macintosh, nor Power Macintosh with a G3 CPU. The CPU is named after and according to the Power Macintosh. The Power Macintosh is not named after and according to the CPU.
An Apple Power Mac G3 CPU uses a Power Performance Computing 750 processor chip. The chip was not the Gx. Seems the PowerPC 970 chip is the first to actually be labeled G5, along with CPU, and the Power Mac.
Apple's current generation moniker (G3, G4, & G5) marks the generations of Power Macintosh computers, then the PowerPC processor based CPUs were named to follow suit.
The moniker Gx is Apple's and refers to the Power Macintosh model first and predominantly, and secondarily to the CPU. The CPU was named after the Power Mac model moniker. At this particular time the fifth generation Power Mac just happens to coincide with the fifth generation of PowerPC.
After the Power Mac G3, the naming of the CPU seems to have taken over importance as the Gx and gone full circle with PowerBooks and iMacs now being named after the CPU, which was originally named after the generation of Power Mac.
Similar to how the "Power" Performance Computing chip was named after Apple's already existing Power moniker and planned Power desktop models, yet now people think Power named Macintoshes are named after the PowerPC chip.
Actually, that was the other way around.
Gx is Apple's moniker, not IBM's or Motorola's. The naming convention for Power Mac models (Gx or otherwise) is independent of the actual processor. Gx is the sub-model (generation) name of the machine and the name of the CPU (not the name of the chip itself as manufactured) as given by Apple, not IBM or Motorola (now Freescale).
The first PPC (601 series) Mac models were called Power Macintosh (1994-1998). The sub-models being 6100, 7100, 7200, 7500, 8100 and 8200. The PPC 601series was the first generation PowerPC. The second generation consisted of the PPC 603 series and the PPC 604 series, Mac models 44xx, 5xxx, 6xxx, 7xxx, 8xxx, and 9xxx. PPC 750 (Apple's G3) then being the third generation.
G3 was the third generation of the PPC chipset CPU and the third generation of Power Macintosh, now called Power Mac (please note the space in the name). Then continuing accordingly.
"...said Mac generations baby."