1. The 12" PB is arguably the best PB Apple currently makes.
The battery life on the 15" PB is very poor. Its a very very nice machine, but the battery life makes it a non-contender if what you're looking for is something portable.
2. There's no point getting a single proc, 1.6 GHz G5 PowerMac. Its not much faster than a Mac with a 1.5 GHz G4 chip. The 15" PB uses such a chip, as does the 17". However, since you say you're interested in the 12" PB, the 1.33 Ghz chip in the 12" PB is plenty fast. I own the revision B, 12" PB with a 1 Ghz chip, and its fast. The new, rev C 12 inch PB is approximately 20-25% faster than my rev B, according to XBench scores from numerous people on the board. A 1.6 GHz G5 isn't leaps and bounds better than the PB's right now, not even the 1.33 Ghz G4 in the 12".
3. They're probably going to replace the 1.6 Ghz model very soon, so if you're willing to wait until July to make your purchase, you could probably get a much better low-end PM later for the same price as you'd pay right now getting the 1.6 Ghz, or you could buy the 1.6 Ghz PM in July and save lots of money on it, as stores will try to clear them out.
4. The only downside of the 12" is the resolution and desktop space. It doesn't go higher than 1024 x 768, a pain if you're dealing with many open windows. However, its not a problem for me, whatsoever.
5. Laptops for school are great. Not essential, though, as I just graduated with my B.Sc using a desktop for 4 years, but now that I'm doing my masters using my PB, it definitely has its advantages over a desktop. My library just got WIFI installed. Guess what I do to access the net at the library while others are lining up to find an accessable computer?