Better still...
To me, it seems that Apple could make a new "ultra-affordable" (say, $400) Macintosh by requiring customers to "bring more to the table" themselves (power supply, case, memory, etc.). Think about this...
Take an iBook and strip away all the following: the LCD display, the case/keyboard/trackpad/button, the battery, the hard drive and optical drive, all the ports and connectors, the memory, and the video/audio chips. Now rearrange what's left (which wouldn't be much more than the G4 itself and the Apple BIOS) onto a single PCI-slot card and package it with some software CDs in a box titled "Mac OS X 10.3 Panther - for Intel Hardware ".
Obviously, some additional supporting hardware would be needed on the card, as well as some software that ran on the Intel side to control peripherals, manage the video/audio/memory, etc. The Intel CPU could even be used as some kind of co-processor, perhaps. Admittedly, developing this software might be the sticky wicket in all this, but I'm sure Apple's engineers are up to the challenge (especially after seeing the success of iTunes for Windows).
Essentially, Apple would be selling the "guts" of a Macintosh and the software to run it (including whatever emulation/control software would be needed to support the card), allowing PC users to transform their computers into fully-functional Macs without having to give up their beloved monitors, keyboards, multi-button mice, kick-butt video cards, etc. that they've accumulated over the years. This system could be dual-booted - that would allow the Mac and the PC to coexist nicely (even, perhaps, sharing the same files on the hard drive).
I can't believe that this hardware would cost more than $300 to manufacture, since the iBook itself sells for about $1000 (so the manufacturing cost must be significanly less). At half the price of the next least expensive Mac (the eMac), and the same price as a mid-priced iPod, many PC people might finally take the plunge and try the Macintosh experience, providing Apple a nice 25% margin.
If Apple made something like this, I would buy three for myself immediatly (forgive me: I have three PCs), and maybe a few more as gifts for friends/family. At $800 a pop, a bare-bones eMac isn't quite worth replacing a fully-functional PC, but at $400, it's well worth an add-in card to turn an existing PC into a Mac.
Thoughts?...