I hope it's not totally dead, im going to buy one in a month or two, if theres an update then great if not im still getting one.
It will do me well so that i can wait for nehalm in the macbook pro next year (if no good GPU is inserted into this year's revision (if there is one)).
Having an iMac at my parents' place and computers everywhere at university, i can go without a laptop for a year with hopefully little to no problems. iPhone and portable usb drive ftw.
So I'm glad they still have the minis, they do well as a short-term purchase if you are waiting on something bigger and better.. but tbh it has about the same specs as my macbook laptop, so if you don't need portability then I don't see much wrong with it (unless you want a gaming machine too). Which I do, but i just don't feel current GPUs in MBP can run the games I want at fast enough speeds, but i still want to use OSX (and don't want to do hackintosh or what's its name), hence the wait for at least the next revision.
Plus when I do have them both, I'll have a pretty neat setup if you ask me - one computer with all the cables in for networks, audio, usbs, firewire and video out, and one with just a power cable. It will finally allow me to actually use my laptop as a laptop, unlike my current macbook which is a pain to disconnect and reconnect every time i want to take it with me somewhere, even the next room.. and thanks IMAP, my mail will stay in sync, and thanks to NetNewsWire, so will my RSS feeds...I don't think I even really need MobileME.
Out of interest, is it likely they will update the mac minis along with mbp - or anytime this year?