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The iMac has an 2.8GHz Intel Core 2 Extreme (4 cores), 4 GB RAM, up to 1 TB HD, etc. Basically, the iMac is a top end laptop for your desktop. Compared to the processor/ram/hard drive, the stock video card is lacking. If the iMac only went up to a 2.0 or 2.2GHz multiple core, then the 256MB 2600 would make sense. With the top end iMac, it makes more sense to have the balls to play decent games and high end video apps.
Yes, one can get the Mac Pro, which is a man's machine, but iMac has been the staple of Mac since 1999. I'm still thinking about getting a Mac Pro, but the damn thing is so expensive. It STARTS at $2800, and that's without a monitor. Even getting the hard drives, video card, and ram third party (because Apple charges way too much for extras), I'd still probably be paying about $4,600 for a computer (tower with two 3.0GHz Quad-Core Intels, 30" display, extra drive and AirPort). That's a decent chunk of change.
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