i actually think the entry level macbook, particularly the $1300 model is pretty competitively priced. built in bluetooth, great processor, good aesthetics, slot loading dvd, size, ability to run anything without jerryrigging (mac os x + windows), etc. set it above other machines in its price range. Its not the cheapest machine, but a solid product. Maybe $300 above its nearest competition if fairly matching hardware. My wife has the macbook and i'm typing off a $650 gateway laptop with significantly cheaper processor, fewer frills, etc. --- and while i appreciate the cheapness of it, i'm just as happy to have the macbook in the house. (although i think next gen macbooks should sport an integrated SD reader) btw, i too don't get the appeal of the macbook pros -- not exactly a value proposition.
Macbook Pros are expensive, yet of great quality and faster because of better graphics cards and more and dedicated graphics memory. The main selling point imo is the gorgeous 17 inch screen with 1680 x 1050 resolution in a very compact light weight package. Also I like the aluminium case... A Macbook is probably better value for money but I have not regretted buying this Macbook Pro at all