Why don't people buy apples?

Many people - even a large percentage of windows users - agree that the Macintosh is a superior platform to the PC. So why aren't more people using macs?
Some of the major concerns of the windows community pertain to software support: What if I want to do X (EG. record video in windows media 9), but it can't be done on a mac from lack of software?
This is more of a problem to the advanced users, like those who would be willing to use Apple's solution to this problem, boot camp. Boot camp, simply put, allows windows to be installed on a Intel based Mac.
This leads into the next problem: Hardware. Apple has come part way by offering macs with Intel processors. But there is still a big gap between the hardware options of the PC and the Mac.
For instance, there really is no cheap mac. Sure, there is the Mac mini, but once you add a keyboard, mouse, monitor, and speakers you have an almost $800 computer. What apple needs is a computer for $499 or so that has everything you need.
Another hole left unfilled is expandability; to have any chance of getting more hardware into you computer (EG. Hard-drives, Optical drives, TV Tuners) you have to get the huge, expensive G5 tower. Few people have that kind of cash to spend on a computer. Even if they did have the cash, they might not want to spend it on a Mac OSx only computer.
What Apple needs here is a computer that people can afford, in the tower form-factor so you can put your new junk in it, and yet still an apple.