And I agree that at first blush, the iMac appears to a better price option than the Dell to a large degree. But, in the end, as usual, there are strengths and weaknesses to go around. The Dells come with a tuner card which you cannot get with an iMac except with third party USB adaptors. The Dells also have a CRAP load more ports than the iMac (they have 6 USB ports, I believe and 2 Firewire ports). You can get a larger screen on the iMac (24 in vs only 20 in on the Dell).
To look a little deeper at pricing...
If you take the "entry level" Dell XPS One and compare that with the "entry level" iMac, they turn out about the same price AFTER you have configured the iMac to be more in line with what comes with the Dell version (Dell appears to be taking an Apple playbook and keeping the options simple). The "entry level" Dell XPS One is $1500. If you configure the "entry level" iMac to have as close as possible set of features (i.e. configure it for 2 gb of RAM, go to the wireless keyboard and mouse options, and add iWork to "equate" to Micro$oft Works), then it will cost about $1478. The iMac will have better graphics (it has the ATI Radeon HD 2400 XT with 128 mb of VRAM where the Dell only has integrated graphics at that level) and more powerful productivity apps (iWork is much more feature rich than Micro$oft Works), but the Dell XPS One will have the integrated tuner, more ports, a more feature rich keyboard (i.e. more multimedia and other controls and a numeric keypad), slightly faster processor (the Dell has a 2.2 GHz E4500, while hte iMac has a 2.0 GHz processor), a faster DVD burner (the Dell has 16x, while the iMac has 8x) and a card reader. Both have a 250 gb hard drive, a 20 inch screen, built-in WiFi, and built-in Bluetooth. The Dell has Vista compared to the Mac OS for the iMac (I consider that a win for the iMac...and based upon the griping about Vista by many, I would say that many Windoze PeeCee users might agree). Overall, seems some like a wash to me.
If you take the "performance level" Dell XPS One and compare that with the second to top iMac, then again it comes out fairly close. The Dell costs $2000 and the iMac (with similar type configuration...upgrade to 2gb, add iWork, and add wireless mouse/keyboard) costs about $2080. This time both have a 320 gb hard drive, WiFi, Bluetooth, and now both have the same graphics card. The differences are largely the same, except the iMac has a 24 in screen compared to the 20 in screen for the Dell...and this time the iMac has a slightly faster processor (2.4 GHz vs the Dell's 2.33 GHz), but the Dell has a longer warranty (2 yrs vs. 1 for the iMac) and the Dell now has Office 2007 Home and Student (which is more feature rich than iWork to a large degree...but then you are limited to non-commercial use for that version of Office which is NOT the case for iWork). Still largely a wash with maybe a slight edge to the iMac because of the larger screen.
If you take the "top of the line", then the Dell costs $2400, while the iMac costs $2430. The differences are largely the same as the previous version discussed, but now the Dell has the Blueray optical drive while the iMac is stuck at a standard DVD burner, but the iMac has a 2.8 GHz processor compared to the 2.33 GHz processor of the Dell. I would say again largely a wash...unless you value the larger screen, in which case the iMac gets the edge, or unless you value a HiDef optical drive, in which case the Dell would get the edge.
Overall, I think they are pretty well in line price-wise at all levels. Depending on what a person considers important, then one could have the advantage over the other.
[soapbox] Backup good...no backup bad!! [/soap box]