There's a new cheaper iMac, and it comes with a fairly underpowered processor. But that's not the only compromise: a teardown reveals that Apple solders in the memory to this particular computer.
As OWC found out, the memory chips are soldered to the motherboard -- removing any possibility of adding additional memory. Add to that the fact that there's no Apple factory upgrade option on the computer, and you'll struggle to improve its performance in the future. Worth bearing in mind before you drop $1349 on one of the things. [OWC]