I would agree that the potential is there, but honestly a Sub-$600 iMac would be enough to make me actually consider one. Of course I'd have to see the specs, but if they're talking about a G4 with some way of adding a lot of memory, I might be sold.
I'd especially love to see OS4 (or even MorphOS) on such a box, but I doubt it would be very possible without a blessing and assistance from Apple.
Wayne