i also recall those one piece apples from the 80's with a 6(?)" monochrome display were considered a joke... xt clones (no HD) were about $800, plus ?? $500 for 13" cga (i don't recall crt prices. mono cost less, and probably worked for wordperfect.). One piece desktops are still a failure, though lcds have improved them. Older SSF were a failure, because the necessary options (modem, graphics card) meant all slots were filled at shipping time.
Your memory's a little off. Around the time of the introduction of the original Macintosh in 1984, one of the main clone manufacturers, Columbia, went out of business. What that meant was that IBM and Compaq could charge a premium for its computers. And they did. The concept of cheap clones from Asia were a few years off. Remember, not so terribly long ago, Gateway and Dell dominated the market with U.S. manufacturing plants.
Getting back to Apple, the original Macintosh came with 128K memory, 400K diskette drives and the 8-inch monochrome monitor. Because of price, you were probably still looking at an IBM PC as its competition, maybe with 64K RAM (not a typo), 360KB disks (5.25 inch, natch) and if you were lucky, they through in a primitive CGA adapter with a cruddy phosphor green screen. In terms of pixels, the Mac crammed more in 8 inches than IBM gave you in 12. (XTs and ATs were available, but they were way too costly compared to even Macs at the time).
As for price, like I said, IBM and Compaq, the two main manufacturers at the time, didn't mind charging through the nose. In February 1985 (after the Fat Macs were introduced and Apple wanted to unload old inventory), I got an original Mac, an external floppy drive, Imagewriter I printer and software for just under $2,200. The price included a copy of Microsoft Word (the most regrettable $250 I've ever spent). You also got the operating system with the computer. For that, the PC side charged extra. PC also charged extra for sound and graphics cards, which were on the Mac motherboard.
In terms of price, the PC folks had nothing that could touch it. (And the Imagewriter was 10 times the printer anything IBM had to offer at the time).
Joke? Sure, the PC nerds laughed at Apple. Of course, the response was the ridiculous PCjr.
That is a joke computer.
A failure? Can't agree here. Sure, lots of people would rather have a CPU box and separate monitor, but considering the millions of Macs, eMacs and iMacs and the assorted imitators on the PC side [those of course were failures] it seems most people have been able to deal with the all-in-one box.
Although Apple released the Mac II (in 1987?), it still has all in one boxes and I'd trade my mini for a sweet iMac right now, any day.
mt