[Matsu]

I see room, if... they find a way to charge a little less than they would for a roughly equivalent machine plus studio display combination...

Using Apple's own pricing to create an incentive structure there's potential for two models:

If we think that a $899 Mac Mini plus $1599 Studio Display is $2500 and a comparable spec 24" iMac is $1699, then it's not inconceivable that a 27" could make it out the door at $1999, and look like a good deal to mac buyers.

Similarly, a $1999 Mac Studio and a $1599 Studio Display tilts the scales at $3600. There is no comparable spec 24" iMac... Again, to me, it's not inconceivable that a 27" iMac could make it out the door at $2999 and seem like a good deal to a subset of traditional iMac buyers... especially compared to the cost of buying separates "from Apple". Those who would rather seek 3rd party displays need not apply...

Apple's luxury pricing likely leaves them enough room to play without making a "cheap" product, and of course BTO options can make things much more expensive. The rest of the value proposition depends on what designers can come up with that doesn't necessarily cost a lot to implement, but adds perceived value. Style? New design? All glass, frameless, etc... further desktop audio enhancement, improved facetime camera/app, improved ambient lighting compensation/display adjustment, improved microphone, maybe just a host of little things that add up to a better plug and play experience. Honestly, I think we tend to underestimate the iMac's appeal compared to the average person who just walks into an Apple store looking for a bit of industrial design in their life...