Charles, I didn't even realize it, Apple is selling this as an "extension" to ITunes and IPod, who''s going to want a stock barebones integrated sound card for that? No one who knows the difference. This isn't elitist to others reading, the difference is as little as $20.
It's always hard to compare apples and oranges (no pun). Your system has a bigger hard drive and more memory, but the VIA integrated graphics are no match for ATI. The audio is low-end too. You need to swap that DVD for a CD/RW+DVD ROM combo drive. You can save some money by ditching the floppy, but you need to buy a Firewire card. The Mac comes with much more useful software, and you also need to use Windows XP Pro to get even close to OS X (so add $100 there). Now you have to get the cool box.
A few notes...
>>Integrated 3D AGP Video
Integrated graphics "cards" on PC motherboards are typically sub par in performance. The ATI 9200 in the Imac isn't a speed demon either, but I'd speculate it's above he PC's video chipset.
The processors are comparable, with the PC coming out on top. But that depends on the test -- the G4 is a 32/64/128 bit CPU.
And for your $466, what do you get? A good pc with a cludgy operating system. The Mac is not about the hardware, it's about style AND a killer OS. Windows IS NOT A KILLER OS. Not yet, maybe longhorn will be, but XP is crappy. I think MS hired design school dropouts to design the GUI.
So it's all subjective, if you are happy with a PC, buy one.
IMO, the best move apple can make is to release OSX for the PC platform. They'll never do it, but it would be great.
You also forgot to add a CD/RW, which the IMac comes with (DVD-R/CD-RW). So add about $20 or so to your list..
You did not account for the software that is included with the Mini Mac...
System software
Mac OS X version 10.3 Panther, includes Classic environment,
Mail
iChat AV
Safari
Sherlock
Address Book
QuickTime
iSync
iCal
Software
iTunes
iPhoto
iMovie
iDVD
GarageBand
AppleWorks
Quicken 2005 for Mac
Nanosaur 2
Marble Blast Gold
Apple Hardware Test
The System Software is included with OSX... but the rest are extras. The iLife package which includes the first five retails for $79. AppleWorks also retails for $79. Quicken 2005 for Mac is $70. NanoSaur 2 sells for $30. Marble Blast Gold is $20. That all totals $278.
Oh, and don't forget that the cd drive in the Mac Mini is a CD burner as well as capable of playing DVDs. And who assembles this? You or the seller who is warrantying it?