Mac Mini to cannibalize older Mac sales

Yeah, I know, there’s a shocker of a realization, right? But it’s true.
Since the Mac Mini was announced, I’ve had many instant message conversations with current Mac die-hards who see the Mini as a great second, third, or even fourth system in their home or office, for xyz kind of use. The kinds of use that would normally be reserved for a two- or three-generation-old Macintosh.
For myself, I was thinking a Mac Mini would be the best way to transition my grandmother to OS X. She’s currently running OS 9.2.2 on a Power Mac 8500 I got dirt cheap from a fellow ATPM staffer, and that was when the iMac G4 was brand new. I had been thinking that a blue-and-white G3 would be the next step up for her (she already has a monitor, so an iMac would be overkill), but now I’m thinking why bother with that? All she needs is the $499 Mini and a RAM upgrade, and she’s good to go.
Everyone knows that Steve could care less that the Mac Mini is going to cannibalize those older Mac sales, especially among the more savvy, long-time Mac users out there who know better than to pay most of the prices one sees on eBay. Apple needs to move units, and for those sort of Mac users, Mac Minis aren’t going to cannibalize Power Mac G5, PowerBook, or even iMac sales. Certainly not enough for Apple to not have come out with the Mini. Apple doesn’t care about the so-called “gray market” of its products’ sales, because those products are already out of Apple’s inventory. The Mac Mini is the here and now, and that’s what counts.