"a great deal of apple's strength is that they don't follow trends. if they listened to what the industry thinks, they would license osx for plain-vanilla pcs, compete against ugly low-cost hardware from their competitors, etc etc etc, until they were indistinguishable from dell or hp, and therefore completely uninteresting."

They did exactly this a year before Jobs came back. In spite of Jobs's claims to the otherwise, the experiment did not last long enough to indicate whether it would have been viable in the long term. What is clear is that the clone makers where releasing computers more expandable and powerful than what Apple actually had on the market.