Ugly? That model makes a great indirect light for your night stand, just load up an all white background and tilt the screen to the ceiling. :lol:
I actually like the case and screen design, very unique and compact. Sort of like a MacMini with a very adjustable LCD screen planted on top of it. Maybe you can gut the case and fit a 1.5GHz G4 MacMini into it and then you could run MorphOS2.5 on it, if you can configure a video cable to the LCD monitor from the Mini's DVI port.
That would be a cool project and the best use of your iMac IMHO.