EDIT: I misinterpreted the above comment. It's Friday and I'm sleepy.
The extra Mhz here is wasted because Apple intentionally values the heat/battery dynamics more in this product. That's how the whole 1.7 Ghz lines of the Core Duo (and now the Core i5/i7) chips came about: Apple worked with intel to make the chips and got a good deal of exclusivity. This was all made clear when the Macbook Air debuted with Paul Otellini and Jobs onstage together.
The Core Duo, in particular, was essentially _only_ found in Macs; it had very limited deployment elsewhere. It fits very well with the circumstances of the Intel switchover; Apple couldn't have used the P4M for its laptops (far too power-hungry vs the G4), or the PM (barely faster than the G4 at all, used somewhat more power).
Incidentally, as I own a Thinkpad with a Core Duo CPU (July 2004 T60p, SL8VN), I think it might have been more accurate to emphasize "essentially" rather than "only."