It looks great (as most Steve Jobs stuff does), but the low cost part really starts to drop away when you start adding the so called options.
$425 for 1G - as this is single memory slot Apple get to keep your 256M
$58 for a keyboard and mouse
$100 to add a (wait for it) 4x DVD writer - NewEgg have the 16xNEC3500 dual layer burner for $64

That makes it $1082 without a display which is not exactly bargain basement any more.