I kind of doubt Apple would go any smaller than 21.5" again, that has basically become the standard size for displays these days and one of the principle reasons to buy an iMac is because of the good display. But, if they did downsize to ~20" at the same resolution and lowered the starting price to $999 or even $899, that'd be a pretty attractive computer. Particularly if it has that Sandy Bridge stuff on board. The other possibility that comes to mind would be if they stopped using the same S-IPS panel that the 27" ACD uses and elected to use an e-IPS panel and subsequently lower prices across the board by a few hundred.
As it stands, iMacs are not horrible values for what you get. The $2000 iMac is basically exactly what you could expect to get for a $2000 windows based PC with a 27" S-IPS display. It's just that... that display is almost too good for the computer it's paired with.
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