The point is to show that the A1 has a foothold as a PC competator and is keeping up with the times,
The mainstream market wouldn’t consider such solution as a "serious" competitor since AMD/Intel markets the entire platform** i.e. Turion**/LIVE and Centrino**/VIIV respectively.
**includes USB2.0, wifi, effective chipsets(DDR/DDR2, PCI-E, SATA, Ethernet, Modem), HD-Audio and 'etc'.
Note that Intel designs and sells DX9c class IGP which kills Altivec (in the area that needs extensive SIMD/MIMD e.g. video and shader accelarator task). Both ATI and Intel have demo'ed DX10 class GPUs/IGPs. Remember that today's DX9 GPUs are SIMD/MIMD processors.
You have to remember that they are trying to make a PC beater, and this is exactly the way to go about it, the price tag at this stage in the game is inevitable, demand has to increase for the tag to fall, and believe me demand will be high; just not at this point.
Hardly a PC beater even at price parity. There's more to a PC then just the CPU.