This is a picture of me not buying it.
While I certainly agree that simplifying their lineup was pivitol to saving the company and I can't deny that the funnelling strategy has worked wonders for their bottom line, they've taken the tactic way too far. In the mid 90s when they had 3% marketshare, it would make sense to scale back the product line to two desktops and two laptops (the infamous 1999 product matrix: iMac, PowerMac, iBook & PowerBook).
Since then, however, their market share has skyrocketed and all they've added was a crippled switcher machine and a rich-man's laptop. In addition to that, they've pushed the PowerMac/Mac Pro out of the prosumer range into the "professional only" range. For all intents and purposes, their lineup is actually SMALLER than it was in '99! People who could've previously used a low-end PowerMac are now forced to buy a high-end iMac to acheive the same comparable performance... which means sacrificing expandability, mandating a display purchase, and a greatly dilluted price/performance ratio.
Apple is well past the days of financial dread and easily has the capacity to meet more consumers' needs.
So many people are begging for an xMac. Apple knows the demand is there, but Steve's pride and Apple's corporate greed are stopping them from doing so. I say "Steve's pride" because he is a fanatic when it comes to his vision of consumer personal computing and if he had his way, every single person on the planet would be using an iMac. Unfortunately for him, there are people who DO know about computers and DO want to tinker and DO want to upgrade and DO want to play games... but since he finds all those things irrelevant, there's no Mac to support it. Unfortunately, this will also be Apple's undoing.
Until Steve wakes up to the rest of us who do not fit into his precious vision (or until he is replaced by someone who does), Apple will never reach its full potential.
I personally have needed a new computer since 2004 when I grew out of my G4 iMac (2002 edition). It is now 2008 and I have yet to buy a new Mac. Why? Because I refuse to allow myself to be funneled into a product segment of which I do not belong. If Apple does not provide a mid-range Mac before this fall, I will finally break down and build myself a hackintosh. I will buy OS X for certain (I am not a pirate), but I will not pay a dime towards hardware I don't want or need. I don't think that is an unreasonable philosophy.
-Clive