jmustretch said:Why not??
Even a newly designed all-in-one g5 imac would bring stiff competition to the current line of powermac g5s (just think ibook/powerbook sales). Currently the 17" imac runs at around $1794 With a new form factor that includes minor room for expansion, a 17" g5 imac would realistically be priced around $2100 (I would think it would not be much more).
The idea of a headless imac was only to satisfy those who want to see one, but the reason we do not have one now is because we have the Power Mac. Nix the Power Mac and produce two smaller more compact desktops. Keep costs down and make more money.
Couple things about your post.
First, iMac prices are will be going down not up. Apple noted that the iMac is too far away from the pricing sweet spot for consumer machines and I expect them to try to correct this. The iMac is also underpowered by today's standards. Just because it gets a G5 doesn't mean the price will be higher. By many accounts G5s are cheaper than G4s. The reason G4s are used at all any more is because they run much cooler.
Also, forget about the iMac getting room for internal expansion; it ain't gonna happen so you might as well stop dreaming. The iMac is the heir to the original Macintosh and it will always be the simple, nearly-sealed machine that it is. Internal expansion isn't even necessary these days. The only thing I could possibly see happen at all is that nVidia and ATi get off their asses and finally create a standard graphics module for notebooks and Apple uses that in the iMac for upgradable graphics, but that's a pipe dream too.
There's really no way to tell whether this PowerMac8,1 is a PowerMac or an iMac. Recently consumer machines have been odd numbered, but that could just be the timing of the updates; they usually don't happen at the same time, but both the PM and iMac are due for major revisions right now.