@Shake - the "why can't Apple offer mid-tower" question has been literally beaten to death on this and other forums. Just do some searches. The answer to this question is pure marketing and product positioning. It has nothing to do with the costs for Apple to "develop" such product, there isn't much there to develop.
C2Q vs C2D is along the similar lines. There are no technical reasons why it couldn't be done. I think we *might* see C2Q iMac at some point, when the clock speeds / price point combination get to where Apple wants it to be.
Apple is very careful with their product offerings & they don't offer every permutation of processor/desktop/laptop/all-in-one form factor. Just because they *can* put together a certain configuration of a Mac - doesn't mean they will.
I would say, if you're unhappy with it - your best bet is build a Hackintosh, and configure it however you want to. It's not that difficult any more.