@amigaguy
Alright, let's hit these point by points:
1) x86 sales have slowed down since 99, to the point that the whole industry is in threat of collapse. The razor-thin margins necessary to compete in x86 are driving most businesses under. Actually, at current sales rates, not even 1 million sell per month.
2) I can get PPC's for as cheap as $8 a chip. Please, find me the $8 x86 chip, and will it compete with a 200Mhz 603e? Sure, this is not in a desktop, but there is a larger world than just the desktop out there, a world that is closed off if you go x86.
3) Find me the x86 based handheld. Find me the x86 based satelite TV decoder. You won't find them, because x86 fails here. You will find PPC, and lots of them. Millions of PPC machines *do* sell per month. Apple is a sliver of the market.
Sure, the Peg is more than an Athlon, but by the same note, it also offers more than said Athlon. (Find me a microATX motherboard with the same features for under $280 brand-new, and that's not counting the CPU in it's case, while the $299 Pegasos price does include the processor) And the Peg does it without producing the huge volumes of heat that the Athlon does.
x86 is not the end-all-be-all range, it's hot, it's power hungry, and it's noisy (due to the fans). Since switching to the Pegasos, I've found my electric bills dropping by $10 or more a month. Imagine a Fortune 500 firm, swapping out 10k workstations for a Pegasos. That's $100k savings for nothing other than swapping a motherboard. Over a year, you've more than made up the difference in cost.