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In many ways, yes.
As stated earlier, product differentiation is a big deal. G3/700 starts to look like a G4 to the masses. Why buy the pro machine when you can get the G3? Not good for apple.
Also, IBM/Moto would have to commit to building in large quantities to make it work. The speed bumps on the portables we just saw were tiny. And I'm sure apple's margins are equally as tiny since the iBook is the hot item now. Volume makes up for the low margin - to a point.
Also, a big thorn in my side is the Mhz/Ghz thing. Read the arstechnica deconstruction of the megahertz myth. Anyway, getting off track and need to catch a flight to my lovely (second and true home) Iceland for a meeting.
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