I don't care about the new one. However, I think $1100 is quite a lot... I think with $999 they would have done much better.
The base model is targeted at a certain market and at the casual home user who does nothing but require web access. The Intel HD 5000 graphics are excellent and more than enough for what most home users & office workers will ever need.
There's a bunch of iMac models available, so if the base model isn't good enough go for the next model up. Simple.
Must agree with several posts here -- was about to start a thread along the lines of "the new iMac is not for you and me"... Reading through all the negativity surrounding the update ('downdate??) - I kept thinking why on earth would Apple release something so obviously open to ridicule from a significant portion of their user base?
Answer:
a.) They don't care what a significant portion of their user base think; and
b.) This is not meant for the significant portion of their user base...
$1100 is a bit too much for an "entry level machine". If you want a PC just to surf the web, than a Mac Mini, or even a cheap all in one would be better. Honesty I feel like this IMac should be more like $800 for these kind of specs.