Been there, done that. A flat-panel iMac is TAM redux. Hopefully, if this rumor is true, they won't be trying to get $8000 a copy... guess we'll have to wait and see.
I wonder if LCD prices have really come down enough to equip even a desktop machine in the near-$1000 price range. Somehow I doubt it, and such a machine would get too far away from the philosophy of the iMac - simple and inexpensive. Mind you, if such a thing is announced at, say $1200, I may very well order one on the same day, but the $799 iMac is likely to continue to have a CRT for quite some time to come...