Quake 3 (old, I know, but still perfectly adequate for this comparison) runs like crap on my iBook's Radeon. Runs great on my gf's MacBook. Same thing with Homeworld 2 on high. The mobile radeon 9000 just wasn't in the same league, in my experience.
I bought an iBook at the beginning of 2006 for around $1200 bucks. It replaced a $2000 VAIO that I had bought in 2003. When I bought it, I did so because it was cheap, small, and 'pretty good', and I wouldn't cry too much if it got stolen while I was travelling, and working in the bush. The iBook has been the best computer I've ever owned, and the VAIO that preceded it was the worst: the iBook has crashed ONCE in the entire time that I've been using it (including 2-years of design and development work), and the VAIO couldn't run for more than an hour without overheating and shutting down, weighed 10 pounds, and LITERALLY smelled like canned tuna whenever it got hot.
This says to me that Apple's 'pretty good' is a lot better than a lot of companies' 'high-end'. Or at least that was the case at that point.
I hate to tell you this, but the fact that Apple has two lines of notebooks is, by definition, a concession to the fact that in order to hit certain price points, they need to cut some corners, and make a line of "pretty good" notebooks. For those that see the value and have the money, they also make "freaking great" notebooks. You can't have something for nothing... You want better? Pay up to the next level and get an MBP.
Or settle for a cheap HP or Dell (or VAIO), and get "stinky and broken" instead.