I can tell you that my dual G5 1.8 with 5GB of RAM was in all things faster than a base model C2D MacBook Pro that was purchased this past summer.
I don't know how much faster a 2.8 ghz imac is when compared to a macbook pro, but it seems like it can't be much more than just the difference in clock, because most of the elements are the same aside from the hard drive speed.
I think that you could spend a couple hundred bucks on your G5 and make it at least as fast as a current iMac, no matter what apple's "independent" benchmarks might claim.
In the real world, the architecture of a G5 tower is much more robust and scalable than the iMac, which is an up-sell on a laptop, made with laptop components.
You can stuff a LOT of RAM into a G5 tower, and you will benefit from it in everyday use if you actually use your machine for work. You can leave tons of heavy applications open and lots of documents in play.
You should also consider a 10K RPM boot drive. Seriously. You add 4-6 GB of RAM and a 10K boot drive and you'll be smoking. The only problem then is the piddly graphics card. May be worth picking up a G5-compatible graphics card on ebay, too.
Think of it this way: An unmodified G5 tower is a solid frame with a powerful engine and lots of room to grow. It's practically 100% potential. There is a reason that pro drag racers are still using engines and from the early '70s.
An iMac is a pimped-out honda civic that is being pushed to its theoretical limits already.
My analogy calls apart somewhat because the G5 is more agile than the iMac, as well.
so the car analogy isn't quite right. But you get the idea.
imac=cool and smarmy and already being used to basically the full potential, out of the box.
g5 tower=calm and collected, gets the job done and fast if you give it the right tools.