I was going to blockquote an excerpt from a story about a rumored $499 Macintosh coming out. But seeing that Apple is suing the people who published it for breaching a non-disclosure agreement, I’ll just link it. (I cause Kev enough grief without the suits coming after him.)
But I will add it is an obvious move for Apple. Your typical iPod user has a Windows box with 3.4 pieces of spyware on it. By removing the “price objection” many of those users who have now used an Apple product and learned first hand “what all the fuss is about” will be more than willing to try a Mac that casts less than some iPods.
If you are interested in the Mac platform, the rumored new iPods or just having a computer that works better, follow the link… Just remember it is a rumor site.
Related Update: James Joyner has the story of Bill Gates’ getting a “blue screen of death” (crashing) during a presentation…. twice.