Steve said in one of the last one of these teleconferences that "Apple chooses not to serve some segments of the market" That would be the mainstream desktop market. And I can see why Apple ignores the largest segment of the computer market: It is very price competitive and has low margins. I don't think Apple will ever make the mainstream desktop that most of us want. There is no room for margins in such a competitive segment of the market.
Yes there is. Apple doesn't have to price at the same level as Acer, Dell or Gateway. I could easily sell Apple towers for $200 or $300 more than for an identical component pc.