It makes you wonder if the eMac was originally slated to be the new iMac, in case the LCD iMac somehow got delayed too much or fell through.
Still, I think the demand on these things will be huge - as much as the LCD iMac if Apple releases it to the general public. But as you noted, I think a lot of sales will be non-educational "referral" sales.
And because there's no variety in terms of color and only 2 models, I'm sure the profit margin will stay healthy on the eMac. Prices of the 17" CRT will probably drop faster than 15" LCDs, and the cost of development was probably quite low compared to the LCD iMac.
I'm glad to see Apple not giving up the low-end to bottom-feeders like Dell and Gateway, and come out with a practical machine in a big way that will cause educators to take notice. Keeping the old iMac alive was a good hold-over strategy, but let's face it, with all the spotlight on the LCD iMac, it was only a matter of time before the old iMac became relegated as "antiquated" even if the feature set got updated.
With a new name and a new design, Apple makes a clean break from the old iMac legacy and the result is an eMac that is modern, capable, and definitely not obsolete. Apple needs to regain the market share lead in education, and educators need to wake up to the hidden costs of those $800 Dells (limited RAM expandability, shared video RAM, no built-in wireless, and crappy 15" monitors)