The iMac G5 is incredibly stupid.
Nobody wants an all-in-one desktop. If they did, they'd just buy a iBook, and plug in an usb keyboard.
Look at the Mac product line. There is a big gaping hole in the low-end desktop. Take the current G5 iMac and remove the 17-inch LCD screen.
G5 iMac - 17 inch Apple LCD screen = $1299 - $699 = $600
They could sell a $600 computer without monitor! Then Joe Consumer would just plug in his old CRT and have a decent consumer PC.
UPDATE: Yes, I know it would end up costing closer to $800. But still, can't anyone get ahold of a monitor easily?