Exactly! How useful is FrontRow without iLife? When FrontRow is part of the OS, why not iLife?
They are both included with new machines, but technically Front Row isn't part of the OS until Leopard. They are both included on new machines...so you can't get Front Row without also having iLife at this point.
Apple does not lose money by offering iLife for free. Apple clearly knows that newbies are attracted to iLife and therefore offers it for free with new Macs.
This isn't about not losing money...it's about making money. It comes bundled with new macs because the cost is factored into the hardware cost, so it's not likely that they will include it in the OS without a price increase. Like I said before, you get one version when you get your mac, after that it's up to you to decide whether the new features are worth the cost. (The one place I would agree that Apple should include iLife with the OS is if they broke functionality of older versions of iLife by upgrading the OS).
most of their customers upgrading to Pro applications. NOT TRUE! Most of my friends and their parents will never need Pro applications.
My parents and their friends (with my dad as the exception) don't go past Mail, Safari and a word processor. My dad uses a couple of other apps (but none of the iLife apps). My sister uses iPhoto, Mail, Safari, Word and Powerpoint. Of the iLife apps, I use iPhoto. If I have a video project, I open FCP out of instinct.
Like I said a couple of posts above. I'm all for Apple coming out with a discounted 3-in-1 bundle that includes iLife, iWork, and the OS because I think that would be in Apple's best interest (getting more users to try out iWork)...but I don't think it's in their best interest to include iLife in the OS without increasing the price, and I don't think it's in the majority of customers' interests for them to include it at an increased price.