AMD Radeon R9 M290x vs M295X
Hrm. So the choices are:
- M290X which may not run as smoothly as one would like when performing even basic windowing tasks. (FWIW, my plan was to spec the 4 GHz i7 with 256 GB SSD, and then add RAM to jump to 32 GB and external Thunderbolt storage.)
- Or, M295X which acts like an afterburner, giving short boosts to performance while causing the entire machine to overheat and potentially shorten its lifespan.
It almost sounds like Apple have, at least for now, bitten off more than they can chew with the 5K screen -- they've got the pixels, but can't drive them properly and safely no matter which GPU you go with.
As far as AppleCare goes: I wasn't planning to buy that. I did that with my 2008 Mac Pro and nothing ever happened to the machine in 7 years.
For what you do, the i7 and 32GB of RAM will be wasted. 8GB RAM would be more than enough, and 16GB would be a very safe overkill. You need to be doing some serious, serious work to utilise 32GB. Free RAM is wasted RAM and low 'free RAM' in activity monitor is not an indication of you needing more, rather 'memory pressure' should be analysed. As for the i7, you don't do any tasks that heavily utilise multi-threading - so you won't benefit much at all from the processor.
I do feel as though you're exaggerating the M295X issues, though. It's hot, sure, but it never caused my 5K iMac to overheat. In fact, I have never seen a report of that. The i7 CPU and M295X inside a 5K iMac will throttle under load (around 10-15%) to avoid overheating. This is heavily analysed online, on tech blogs, on YouTube, the lot. It is not the same as overheating the entire iMac.
I don't think they have bitten off more than they can chew, they have put some of the best hardware available into this iMac, but I believe they neglected to invest in a new product design to support that hardware this time round. I would be extremely surprised if the next 5K iMac didn't have a new physical design. The reason for omitting it this time round may have been due to profit margins already suffering due to the 'cheap' price of this iMac, given the 5K screen. With Apple, EVERYTHING is about profits.
Please, please invest in AppleCare. Save money on the unnecessary RAM and spend it on this instead. You're buying a first-gen product with AMD GPUs in again. The AMD mobile GPUs Apple used in 2011 put the entire range (iMac and MacBook) in lawsuits, recalls, the full works. The past is not necessarily an indication of the future, but it provides some doubts given the immediate and widespread concerns over heat and relatively poor performance.
I realise I'm not helping with your choice, but I'm just relaying everything I've researched over the past 3 months or so.
For you I would not hesitate to recommend the i5/M290X 5K iMac with the 256/512GB SSD. Upgrade to 16GB of RAM yourself if you really need it for the VM. It will be more than capable of achieving the tasks you've stated. The screen is absolutely brilliant on these machines, and the hardware provides good mid-range performance for professional work, as you'd expect from an iMac.