I don't know if I agree. I don't think it would be bad for Apple to expand into a cheaper market. The experience of owning a Mac is not about hardware, it is about the OS. If it were about hardware, then MBP owners and my friends with BBs would be purchasing highly spec'd alienware type computers for raw power with the incredible VISTA I know many users who use G4 PB macs which are god awfully slow in comparison to SR MBPs, but they still love them b/c of the stability and the OS.
You realize that they're still able to use them because Apple makes products that good right? When have you heard of a $500 notebook lasting for years? It doesn't happen very often. Why? Because they're cheaper computers that aren't meant for the long run. They have lower end processors and cheaper parts; essentially they are the "left overs" of the previous year's purchase orders. The experience of owning a Mac is both the OS and the hardware. Both are leagues ahead of PCs. That takes a premium. Going for bargain basement is a bad idea. It would create a host of problems, and would lower the marketing position Apple currently has.
That being said, generalizing that people who purchase 500 dollar computers are ignorant tech consumers is just wrong. Some people would LOVE to have a mac, but they just can't afford it. Yet in a similar way like your analogy, I know lots of people who would LOVE a BMW/Mercedes but they just can't afford it either. Yet computers are different than cars because the difference between a toyota and a mercedes is in the tens of thousands, while the difference between an HP and a Macbook is in the hundreds.
When was the last time you spent $500 for a primary computer? Thought so. My point was that most people who look for $500 computers don't know much about computers, and Apple probably would be better for them, but they don't know why. They don't take the time to understand the range of products before them, so they just purchase what seems to be the best price.
Where did you get the idea that HP and Apple are hundreds apart? For similar specs, the difference is at most $50(and this ignores the cost of virus protection, the extra RAM needed for Vista, and the heavier weight of HP's models).
If Apple truly wishes to expand further into the computer market then they must introduce more solutions to fill their price gaps. But it doesn't look like they are interested with this anymore especially if they drop the mini. But this would still be fine and satisfy investors if they continue to be successful with the iPod, continue to convince current Apple Users to upgrade every couple of years, and steal market cap in the cell phone market with their iPhone.
Frankly, too much expansion can be a bad thing too. As is true of all things, there is always a trade off. If Apple expands too quickly, we may see a decline in quality (as I"m sure some of you out there have already experienced). I think the iPod and Vista are drawing plenty of people to Apple for the moment. It better keep it up and continue to deliver quality products.
So in general, I don't think that Apple is snobbish at all. They are in the business to make money, plain and simple, revolutionizing the markets is what they need to do to do that. Apple users though do have a stereotype of being snobbish, which I must say is not always a good thing. The genius behind Apple, I have to argue, hasn't always been exclusive and great technology, it has been a unique user experience paired with incredible marketing.
I think Apple users seem snobbish because they just have it so good. We like to show off our stuff, and why not? It's sexy, fast, and all ours Otherwise, yes, Apple has a brilliant marketing department.