It's not really limited; it does everything I need and then some, as I don't intend to game with it(I have a tower PC for that, I wanted a laptop for lugging around for notes, browsing, etc). I went with it, as opposed to a PC machine partly because of the size compared to the features(most 12" sub 5lb machines tend to take something out to get there), such as an internal Airport Extreme(802.11g) card and full-sized 6 pin Firewire port, and more so for the operating system itself. MacOS X is extremely stable(more so than XP I believe, but this isn't saying XP is bad), and its Unix base is great to work with. The software written for OS X tends to follow a standard design, which makes using new software pretty painless, and the fact that it's pleasing to the eyes doesn't hurt it either.
I have a "power machine" for my power needs, but I don't want a laptop that follows that philosophy(keeping track of more than 1 PC really is hard work), so I wanted something that was simple and easy to use as my laptop, so that I could use it and forget about it, instead of trying to maintain that. I also wanted something *nix, since as a CS major, it's good experience, and the toolkit offered is great, but Linux distributions are opposite to what I wanted, since they take a lot of tweeking and upkeep to keep going under ideal conditions, so this left me with a Mac, a simple machine with a *nix OS. While it's not the fastest machine on the block, there aren't a lot of words to describe the relief of pulling it out, and just being able to do stuff without worrying about the machine, or dealing with WinXP's general inconsistencies.
As for looks, that's really one of the last things I thought about. Looks are a stupid reason to buy a completely different machine(similar machines it would make sense, but different machines, no), but since I was already looking at a machine like a PowerBook, it was another point for the Mac. The fact that it looks great is nice for gloating reasons(and chicks😉), but it's really not something I'm concerned with as long as another machine would have the same general dimensions and weight.
It's really the sort of thing you have to try, otherwise most of this doesn't make any sense. As far as laptops go, the overall Mac exerience is just better than anything I could get from a PC.