Nah, Apple's hardware's never been the problem. It's the whole propietary hardware/software thing that's been the issue. Your toaster would be a great server if it had Dual G5's :)
OS X server is pretty much SCO Unix (shh) so if you don't mind paying a slight $$ premium for the package you can just about buy a turnkey 30 Gigaflops rackmount with a delivered unlimited client OS for $4k.
They're a viable option. It's just the Apple logo on the side that makes people assume that whoever buys them is driving around in a Neon Yellow VW Bug listening to his IPOD :)
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