A500 when it arriver was a economy choise for people, in that time computer with HD was about 2-3 times more expensive.
Lets not forget that. Its all about software, NOT hardware.
There are plenty of PPC based computers, in every electronic store, at least here in Europe. You can get about 150€ computer, with lan, usb, dvi/scart and probably with WLAN. OS they uses is Linux. CPU is from 350mHz to 1000mHz, ram is 128mb to 512mb
Those computer are cleverly disguised to Digital TV set top boxes.

About 50% them are actually PPC based computer Linux inside. I call them computer, because they have all the needed connectors, usb, hdmi/dvi/lan etc They are digitv boxes only because the way OS is installed and configured.
"cleverly disguised", about that here is nice joke about it
http://www.dontevenreply.com/view.php?post=84