Without extensive price shopping, I found a dual AMD 1.9 gHz motherboard with processors and 1 gig DDR error-correcting memory for under $1000 total. About @500 more would fill out the system. DDR memory is twice as fast as SDRAM, which is what the Macs use.
Any number of web merchants will allow you to pick the components you want for a PC and will assemble and install the OS for free.
The Superdrive (DVD burner) is currently selling for about $500 for PCs. By summer it will be around $300.
Argue convenience and beauty all you want, but be careful about arguing price/performance. And please don't keep comparing the wonders of OSX with Win95. It has been 7 years since Win95.
As someone who uses a ton of i386/x86 hardware for work (UNIX systems), I can tell you those "hand-built" systems come no where close to the quality of components used in a Mac. Apple builds tanks. In 15 years of using Macs, I have never had one hardware failure so I have ended up with a closet full of Macs. About 2-3 years of use of a x86, they are pretty ragged out. They just run so damn hot compared to a Mac.
Yes, you can build a PC cheaper. I just don't know if I want to rely on it working day in and day out.
I would never compare Windows 95 to Mac OS X. Windows XP is easy enough to beat. Why would you want to use an OS that limits you to 80% of your bandwidth and you have to report to Bill Gates and Microsoft if you want to change your system up not to mention that Bill Gates refuses to let you see one line of the operating system source code? Talk about proprietary!
Just curious, with this system, would you be able to burn a DVD the first time you turn it on? Or would you have to buy DVD burning software? Also it sounds like this system would cost more than the top of the line iMac -- granted it has two Athlons that run at the temp of Sun in it.