mark my words -- there will be a iMac G5 this summer. and i'm starting my next year of college in the fall, hopefully it will be available before mid-August. if not, i can always have it on order and "suffer" with just my 1GHz Ti PowerBook G4 
but yes, the PowerMac 8,1 thing definitely means iMac, and since it jumped to 8 instead of staying on 6, that means a huge change, so iMac G5 here we come. it just makes sense. they last updated it, what, a few years ago, to the new form factor? the only thing that doesnt make sense is that both desktop machines would have G5s, and both laptops would have G4s (dont give me PBG5 crap). usually the Power series has the step up (remember when it was PowerMac G4, PowerBook G4, iMac G3, and iBook G3? IIRC) but i think the iMac deserves a G5, if it is to continue selling. and i was just about to buy an iMac G4, but then i realized that all the rumors were coming together for a G5, so i'm gonna hold off.
but about the comment of the iMac not selling, its big in educational markets, and a lot of people (like my mother, who bought one in november 2003) don't NEED the power of a G5 to justify the price. the iMac is expensive (but still powerful) enough for them. my only complaint is that 256 MB is not enough. even for basic stuff, when you have 2 or more accounts logged in with fast user switching (yes, on the new, top of the line iMac) it slows to a crawl.
but yes, the PowerMac 8,1 thing definitely means iMac, and since it jumped to 8 instead of staying on 6, that means a huge change, so iMac G5 here we come. it just makes sense. they last updated it, what, a few years ago, to the new form factor? the only thing that doesnt make sense is that both desktop machines would have G5s, and both laptops would have G4s (dont give me PBG5 crap). usually the Power series has the step up (remember when it was PowerMac G4, PowerBook G4, iMac G3, and iBook G3? IIRC) but i think the iMac deserves a G5, if it is to continue selling. and i was just about to buy an iMac G4, but then i realized that all the rumors were coming together for a G5, so i'm gonna hold off.
but about the comment of the iMac not selling, its big in educational markets, and a lot of people (like my mother, who bought one in november 2003) don't NEED the power of a G5 to justify the price. the iMac is expensive (but still powerful) enough for them. my only complaint is that 256 MB is not enough. even for basic stuff, when you have 2 or more accounts logged in with fast user switching (yes, on the new, top of the line iMac) it slows to a crawl.