Well, it is close. On Newegg right now you can get 13.3" laptop with a 160GB drive, 2GHz Core 2 Santa Rosa, and 1GB RAM. Speccing a MacBook to match costs $450 more than that one (actually $250 more since that machine is on sale) so... close, but the idea is still there.
I would still get the MacBook, and did. Heck, when I got my MacBook it was actually the cheapest thing out there, by a wide margin. Most other systems were still using the Pentium M at that point, and I wanted a Dual Core. I never bought my MacBook to a be a primary machine, but I didn't want to be cursing it at every turn for being slow.