But think of it from the average consumers view. They're gonna walk into a store and see mac mini in a tiny box, on the side all it shows is "iLife included" with a bunch of pics on the side.
People aren't going to think its a PC, they'll think Apple released something like a media HUB, then they'll see $499.99 and be impressed that it's cheap. Then they'll take the small box home, open it up and see this.
And instantly they'll think it's an extension of iPod or a DVD player. Once it boots up into OSX and not Windows they'll again veer away from the PC intimidation feeling and see a graphical beauty that is the OSX GUI. iLife launches and boom, the joe consumer feels like he/she only spent $500 for a stylish piece of electronics that does everything media. The standard tasks you'd do on a PC or Mac are secondary to Joe Average but being able to do everything you could on a PC on this tiny little box will impress them.
Apple is going into complete media integration. Apple isn't using ipod as a strict MP3 player, they're using it as directional marketing for thier Mac Line. It only started with the ipod, now that Apple has that taken over as the best and only way to listen to digital music. Then iTunes came, which gave the first indication of Apples new direction. Now mac mini with iLife which is total integration. The use of ipod to sell the new face of Apple is genius.