Microsoft is really feeling the pinch of the economy eh? IMO, the commercial does nothing to really help them, other than to say "we're cheaper, which means we're inferior quality". But then again, Microsoft fans will think this is the best comeback yet.
The point is, is that you get what you pay for. If you buy a cheap PC, you are guaranteed to get inferior and crappy performance. If nobody has realized, Apple always uses mid-range to top-range processors and parts, not anything below. Even if you buy Apple's cheapest computer, the Mac mini, it's still built with quality. Not to mention that Mac OS X runs better than Windows Vista. Windows 7 will change things up a bit, but by that time, Snow Leopard should be out as well.
I agree that while Apple has always tailored to specific markets, they need to expand a little more. Offer a consumer desktop solution with Core i7 processors, instead of having just a professional solution that is out of reach for most consumers. Price it at $999, and then their line-up is complete. Most i7 based machines go anywhere from $1000 and up.
Good ad Microsoft, just make sure you base it off of what you get instead of just the sticker price.