If it were designed like the ipad, the components would live behind the screen in a similar way. I think this is what a lot of people were expecting. They could have done that, but they chose to make it just a little bit thinner and put all the components into a big chin below the screen.

They made a trade-off to make it look uglier/bulkier/worse from the front when actually using the machine, just so that if you happen to glimpse it from the side it's a little thinner. There's not even the argument of portability to support the pursuit of thinness here as with most of their other devices. So I would argue the opposite, this new iMac is just about the pinnacle of thinness for the sake of thin design.

(You could of course argue that it's not ugly, that's totally subjective, but they clearly went out of their way to make it as thin as possible).