Lets have a look:
Dell XPS One (performance)
65nm Core 2 Duo E6550 2.33Ghz ( vs 2.4Ghz 45nm iMac )
2GB DDR2-SDRAM ( $100 extra )
Radeon HD 2400 ( iMac has HD2400 XT, a higher clocked version )
320GB HDD ( $50 extra on iMac )
8x DVD/CD Burner (same)
Wireless Keyboard and Mouse ( $50 extra on iMac )
MS Office Home and Student ( $150 extra )
TV Tuner (n/a on iMac)
Dell: $1799
iMac: $1548
Now please tell me what is wrong with Apple.
You seem to b*tch about that there are $399 desktops around, I'm sorry that Apple does not have an entry level offering. iMac is very reasonably priced, I agree that the screen is outdated though.
Thank you for doing this bit of research. I for one found it helpful.
Now to answer your question, I would say that two things are wrong with Apple, going solely on the basis of your search there.
1. The comparison is with Dell. I would never consider buying something from Dell, and I would advise any one else likewise. So, if you must compare with Dell, something is already wrong there. (Just to be clear, I would begin by looking for a local build-to-order shop, and make sure that I have a good conversation with whomever would put the thing together. Not for everyone, I know, but I cannot for the life of me figure out why I'd want to buy my computer at a shopping mall or a best buy, either.)
2. Dell, for all its obvious flaws, does offer other options besides the iMac wannabe. Apple only offers two other options, the mini and the pro. And when you expand your choices beyond Dell, it grows even more. To finish off this point, the main reason why you don't see more choices is that Apple actively discourages other companies from installing OSX on their wares; but if this ridiculous situation continues, whereby Apple refuses to meet the obvious needs of the computing community, then alternatives should emerge. These alternatives include psystar-type shops, online efforts a-la osx86, or linux--as well as other things that we can't think of today, but which people will think up if given enough time and incentive.
Now, there is another thing that I object to, and I wish others here would start to care about this: how this sort of scheme shuts out people who are not as financially well off as some of us. I have seen so many replies in threads like these that dismiss the needs of anyone who can't afford a mac pro, or who refuses to settle for these other inferior choices.
Yet this elitism is not even well founded in a technological sense. There have been hundreds of posts in this very thread praising the design of this iMac (when it has trouble with basic cooling because of a rather useless attempt to make it skinny), its fast speed (when it has a RAM ceiling of 4 GB), its cpu (nothing special, specially since today is as cutting-edge as this model is going to get, then it will sit on the shelves for months until the next upgrade), its obviously inferior glossy display (thankfully, you see the problem there) ... so, as I read these posts, I say to myself "damn, these Apple users are lacking in clues".
The computing world is much larger than Apple pretends it is, and we as users are not well served by that constraint.
Now, you did not address what I said about linux. When all your friends are running linux because they'd rather keep an extra $1000 in their pocket and Ubuntu is pretty good, are you still going to enjoy OSX so much? Or would you enjoy your computer more if your friends went with OSX as well?
I sense that plenty of posters in this thread don't give a damn about such communal issues, but I do. If Apple keeps downgrading the hardware until only the well-moneyed clueless--or the Mac Pro types, like myself--still want their hardware, then as a communal, and computing, experience, using Apple is going to start to suck.
I hope this trend reverses in time, but it's beginning to look like it will not. I guess a lot is riding on what they do with the mini.
Finally, consider what happened when OS X came out. Linux users switched en masse to this cool new version of unix, knowing that the problem of searching for hardware drivers would be over. Furthermore, Apple made a point of playing nice with the open software communities back then. With each successive "upgrade", all the premises in this paragraph continue to go in the wrong direction; for a particularly crass example, look at how Apple makes it impossible to play flac files within iTunes. If Apple loses a critical mass of those linux users, then you can rest assured that it will lose its image as a maker of good--if slightly pricey--hardware, and it will be replaced with an image closer to what it had in its pre-Unix era.