Almost certain we will see new iMacs around the release of iLife!

[theCaptain]

Do I have any proof? No but I do believe the new Powerbook 12in is competing directly with the flat-panel iMac. The new 12-inch Powerbook can be purchased with a Superdrive for $1,999 the same price as a 17-inch Flat Panel iMac. The powerbook has same or better graphics(Geforce 4GO), faster and better processor(867mhz G4 133mhz bus), better memory(ddr), better I/O(bluetooth) extreme portability (around inch thick, very light) , slotloading drive(superdrive) cool extras (auto sensor keyboard lights). One of the only things that it that it can't compete with in the Flat-panel iMac is the 17-inch moniter. The reason I think that the new iMacs will come at the time of iLife is because I think they fit very well into what iLife is all about, and by the time they get released Apple will have cleared out its old inventory.

[bjurusik]

I don't believe the keyboard on the 12 inch PowerBook has autosensing lights, though I may be wrong.