What’s interesting about all this isn’t that it’s really a crummy, cheap PC, which seems to run OS X, it’s that Apple has been totally dead silent about the threat. Maybe they don’t consider it a threat to the Mac. Maybe it isn’t.
At $599 the Mac mini is not cheap as a PC, but it’s a full-fledged, honkin’ on little Mac which works very well out of the box. Save $200 and get some expansion and a loud fan? No thanks. How much expansion does one need on a cheapo clone? External hard drives are $100 or so, USB or Firewire, and that gets a Mac mini another hard drive. Graphics cards? Admittedly, the mini isn’t great but it’s better than some dedicated graphic cards of just a few years ago.
This is an exercise, not a trend.