Smaller is an un-needed compromise
What is the point of a "smaller" desktop system?
They are inherently immobile. They don't move much, unlike a laptop, tablet, or iphone.
Smallish is good to keep clutter and mass down, but really. The Mac Mini is down-right tiny as desktops go anyway. Dress up the form factor, if you want, but smaller isn't neccessary.
They need to go toward the internet terminal, second home computer, media-center capable, or other home-use non-mobile computer uses.
Like someone else's signature so aptly says... a Mac Pro as a home computer is like a Freightliner with a pickup bed being your everyday pickup truck.
But, conversely, a bicycle with a pull-wagon isn't exactly an everyday pickup truck, either.
I can understand folks saying that it should go with an external optical drive, but why? why have more parts and cables? An internal drive is fine, and space for it can be afforded.
What I would like to see, and think is appropriately possible:
-Penryn processors, with 4 to 8 GB of RAM Capacity. (future compatible)
-single high-cap 3.5" or 90-degree rotated dual 2.5" E-SATA hard drive configurability. (I wouldn't mind an SSD OS drive with a HDD storage drive, even if it is a future upgrade) Two 2.5 drives side by side are almost exactly the same footprint as a standard 3.5" drive.
-quality GPU, with an HDCP (or whatever it is called) hardware compliance for BluRay HD playback capability as an upgrade option, with a BluRay Drive. Soldered GPU chip works, but ZIF-chip socket for upgradeability would be better.
-Wireless-N, Bluetooth 2.0, Gigabit-Enet, USB2.0, and FW800 or (1600, if ready) all standard. Hopefully even an External SATA bus port, for external drive connection.
-dual monitor ports. dual-monitor configuration is more and more common, single is adequate, but can be a bit of a handicap if people want a dual monitor system, but don't need or can't afford a Mac Pro. If folks do want a single monitor machine, why would they not want a base iMac that is all-in-one? Even with dual ports, a single monitor plugged in would still work as normal, leaving the second unattached. Hard to add a second monitor, though if the second port doesn't exist. DVI can be converted to HDMI, anyway, for media-center, so dual screen output there might be useful, also.
Keep the analog+toslink audio ports. I just wish there were an aftermarket external sound processor and amplifier that would work with a mac. Simplifi's equipment doesn't appear mac compatible. An external sound processor, D/A converter, and Amplifier stage that outputs multi-channel audio to most people's existing home theater loudspeakers, with only Toslink optical in, and USB control interface, would complement the Mac Mini nicely. No controls except Mac OS interface.
That could be configured to be quite a media center, better (more expensive and complete than AppleTV), with the BluRay playback package, and being able to output HD signal to a 1080p monitor, and output digital audio to a processor/amp, and speakers... and the IR-Remote capable Front-Row interface, and an El-Gato HDTV-DVR reception and storage system, and Griffin SharkFin Radio receiver, which Griffin could upgrade to HD-radio reception, maybe even weather-band, in addition to internet-based streaming radio, or a USB-based XM/Sirius receiver and interface plug-in. All sorts of configurability with the hub being a mac computer with a streamlined FrontRow interface on screen, in front of a full-functioning computer, and even server.
I'd also love it to be able to serve as a network node for AirTunes/AppleTV-like functionality from portable macs like laptops or wifi/bluetooth iPodTouch/iPhone and future such devices. That would allow you to play music from another network source through the media center, not only just locally-stored media, or media fetched over the network by the media center. Media could be "pushed" to the media center by other nodes. That would be fantastic, if then my iphone could broadcast audio (or even video if processing is possible) to the media center via it's wifi connection, and do basic settings and small-demand data syncing via wifi or bluetooth to such a media hub.
That could replace, upgrade, and enhance every part of my home theater, except the speakers, and replace every box in the component stack with one computer system, that could also double as a home network file and media server and central data store, with a TimeMachine, or other external HD central backup, and be a central iPod and iPhone sync source, and accessible from other computers via screen-sharing. (iMacs all of the sudden become satellite audio and video displays, remote from the central hub)
That way, Apple could truly capitalize on "Digital lifestyle hub", as that is what it would truly be capable of, with a bit of aftermarket assistance that mostly already exists, or could exist pretty easily.
Mac Mini has a place in the sub-iMac segment, but it also could survive and even thrive as an iMac headless alternative, or media center, or home file and media server, with just a few well done upgrades.