Personally...
If I was personally in the market for a 17" iMac, I'd say the 899 is a good deal. Although given the free nano promotion I think I'd put in the extra busy work and eblow grease to snag a 17" $1,199 iMac, sell the Nano for $150-200 on ebay and have a iMac for close to a grand as a final price. Especially if you considor adding any upgrades to the 899 base model such as the larger hard drive and remote. At least you get a video card which will take strain off the RAM making the upgrade to 1 gig less necessary (unlike it being quite important with integrated graphics and a extra $90 cost if done through apple), and if you want to upgrade the higher end model you just have to buy one 512 stick oppose to two. Also, bluetooth and a superdrive may be nice to have in the future... you never know right? Well maybe you do... Regardless, that's only for personal purchase. For bulk purchases, educational institutes, or young kids 899 is fine. But then again a dropped down priced eMac would be fine too. Is it true that it doesn't come preinstalled with iLife '06? I can't seem to find information regarding this but read that in a few posts up. Not having iLife '06 is huge, that's one of the things I love most about the Mac Experience and really serves as a gateway to Apple's wonderful application world. That, in my opinion, would be a crucial 60 dollar value - making this computer seem like even less of a deal. It's gotta come with iLife '06! If the mini's can afford having iLife '06 bundled, so can this right?