The way I look at it is the base model iMac is not a product a lot of people should buy, but it's far, far, far, far better than the base model iMac they used to sell (and technically still do, although it's tucked away and hidden.) The 256GB storage limit, the 8GB of RAM, the two ports, the lack of wired networking... compared to the 1080p, three-gens-behind chip iMac with a 5400RPM hard drive until recently, it's like night and day.
It is kind of funny that modern Apple has such a tough time making a $999 iMac.