I'm not sure I agree:
- Mac Mini = $649 without any options and no DVD burner
- now you might consider the keyboard and mouse you own as "free", but you did pay for it at some point. Let's add another $30 for those items.
- your monitor might be an inexpensive 17" from Tigerdirect. Add another $150. Add $200 for the cheapest 20" monitor if you want to match the iMac spec.
- you decide that you would really like to hear the audio from itunes and attach a cheap set of speakers on sale from Futureshop. Add another $20.
- you realize that 80 GB is not nearly enough to store all your music, photos and downloaded video as well as the software you have installed. You get a cheap external drive from Costco. Add $140 for a 500 GB WD My Book.
- Your Mac Mini just went from $649 (before tax) to $989. If you splurged on anything else like the "high end" mini, bigger/nicer monitor, nicer speakers, larger external drive, headphones, microphone, iMic, extra RAM etc, you are right in the ballpark of the $1299 for the first tier iMac.
Let's not fool ourselves. The mini is a great way to switch to Mac when you already own the other pieces, but if anything, I would think the mini is more expensive when you consider the price/performance against an iMac (all things considered).