Agreed ... a powermac is *massively* overpowered, hugely too expensive and far too noisy and anything else in the range is entirely unsuitable.
Hit the nail right on the head there.
As Chimaera said, the Mac Pro is a hardcore workstation. It's basically server-sourced chippery stuck into a desktop tower and as such it's the best PC on the planet bar none. Even better at running Windows than HP or Dell's workstations!
The iMac on the other hand is really not a very good option and 100% UNappealing to anyone who doesn't want a monitor (read: the whole PC crowd). It's also a bit silly IMO, as it's positioned in a no mans land. People tend to use either small screens (15-17") because of concern to desk space and general need for compactness or the biggest screen they can get. And those users would get a 20-30" screen, and support it with a Mac Pro's goodness.
In fact, I've seen a lot of mac minis in design studios, as they have more than enough power for the likes of Account and Project Managers versus developers and designers. With a 17" screen. How many iMac's do you see? None.
Now, I just can't see how Shuttle can have a whole business dedicated to tiny machines and Apple not see business sense in them. It's impossible, unless they're doing the wrong thing.
Which is what I think is actually the case. The Mac mini is too inflexible a product. I think they need to take a page out of the Mac Pro's book. Create a solid base machine, that's ridiculously cheap yet only just OK (but really pretty nasty), and then give every type of bell and whistle as a high-margin optional extra.
Then Apple will continue to have the bragging rights of having a dinky cheap mac, and then when people buy it, they will configure it to actually be useful for people to use. Who knows a black mac mini perhaps?
As for a Mac nano, this would also assume Flash storage. There have been rumours to the effect of flash macs, but only on the laptop side. While flash is only an assumption, I really can't see any point in this flash storage on a desktop machine... especially for a cost-effective Mac at that. I may be reading too much into the 'nano' name, though.
No, I think the mini needs to be a little bit more midi, and gain an inch or two to put a cheaper but bigger 3.5" HD and a PCIe slot or 2. And also make the chip upgradeable. Finally with Santa Rosa, it can have 4GB RAM, the 802.11n Wifi and the Turbo Robson thingy all as optional extras. Oh an needless to say, big graphics cards (a GeForce 8800 GTX anyone) as an after-market add on as well as an optional extra would be cool too..
I think the real problem here is Apple's pride: there isn't a snowball's chance in hell Steve would let Apple make a Mac fatter than it is now. So they'll just do it the Apple way. Discontinue the mini and make a new Mac.
My firm belief therefore is: The mini is dead, long live the mini!