Well, it has a 2.8ghz P4 (quite a bit faster than the 1.25ghz G4 for most things), double the hard drive, double the memory, and that expensive XP license. I'd say it has the top-end iMac outpowered so it's a little tougher to complain about the price, though I pity the poor guy who buys THAT thing for the family for Christmas...