To those who keep saying that the Mac mini is only 200$ less than an iMac, let me tell you something. First of all you keep comparing the high-end Mac mini to the low-end iMac and that's just not fair. The low-end Mac mini is 650$ CAD and the low-end iMac is 1300$ CAD. Last time I checked that was twice as much, not "only 200$ more". And to those who say "only 300$ more", well, that's almost half the price of the mini itself. No small change that's for sure. You can get a Nintendo Wii and a Nintendo DS with that 300$.
Second, most of you also keep adding the price of an LCD display, a keyboard and a mouse in the price of the Mac mini. But that's not something you can add because the Mac mini is intended for switchers. That means someone who already has a PC, which means someone who already has a display, keyboard and mouse (unless they have a laptop, but they'd probably be looking at the MacBook anyway). Most switchers aren't going to buy these things again, which is why most of us don't like the idea of the iMac in the first place.
So, in the interest of understanding your fellow switchers, let you tell me my switching story. It may be a new insight into how some of us buy our computers and peripherals...
I'm 35 and I've been using computer pretty much all my life. I started with a CoCo 2 (TRS-80), then a PC XT, 286, 386... blah-blah-blah (the usual PC story after that).
Before the Mac mini, my computer was an Athlon XP 2400+ with 1GB RAM and a Radeon 9600XT 128MB. It sure was fast, but it was also huge and noisy. And no Mac OS X either (not that I knew any better at the time).
I did have a Logitech USB mouse (still using it after who knows how many years) and a 15" CRT monitor. Add an Epson printer to that setup, but it's USB, so no worries there.
Around the time Tiger was released, about 2 years ago, I bought a Mac mini G4/1.42GHz. I did have to buy a PS/2-to-USB adapter and a small USB hub, but that was only about 40$ for both parts.
At the time I wasn't sure if I'd keep the little box, because frankly I was used to the "bigger is better" PC mentality. And going from a 3.5" drive to a 2.5" laptop drive and from 2 GHz processor down to 1.42GHz sure didn't help (or so I thought, at least in the case of the CPU).
But you know what? After only two weeks the old PC was turned off, forever. I still have it, but only because it's not worth anything anymore. It's still stored in its box after more than two years.
After a while I had enough money to upgrade the monitor and bought a ViewSonic VP171s LCD monitor.
Then of course I ran out of storage, so I bought one of those Mac mini-shaped external drive and put a 250GB drive in it.
A few months ago I bought that new aluminum Apple keyboard (takes some time to get used to it, but now I can't stand classic keyboards).
Now that Leopard is available I bought myself yet another Mac mini (Core 2 Duo/1.83Ghz) and I'm still using my old Logitech mouse, Apple aluminum keyboard, 250GB external hard drive and of course the ViewSonic VP171s.
The Core 2 Duo is impressive enough (at least with the Handbrake DVD encoding speeds), I can upgrade the computer to 3GB and if I ever need more speed I can even do the external SATA 3.5" HD mod. However, I now find 3.5" drives to be a bit noisy and actually turn off the external drive when not in use. I got used to the silence of the Mac mini, I suppose.
The only detail that bugs me a bit is of course the GMA950. However, given the fast upgrade cycles of Intel and the time it may take Blizzard to finish Starcraft 2, I'll probably have time to change the Mac mini again.
For now, I'm just happy that a mere 650$ CAD gave me a "whole new computer". With the other 650$ CAD that I didn't spend on the low-end iMac, I'll be buying another Mac mini (or hopefully, its replacement) in about 2-3 years.
If I had bought the iMac I would only be able to replace it in 4-6 years. We all know how slow and underpowered a 4-6 years old computer can be (even in the Mac world), so I'd rather upgrade often at a lower cost. In the end, Apple gets the same money from me, but I get two computers instead of one computer with yet another display/keyboard/mouse. Another way to look at it is that I get a free upgrade at mid-cycle.
Is the Mac mini eating away at iMac sales? Probably. But then again it's all about profit margins for Apple, and I would never have bought a 1300$ desktop computer with a built-in screen.