Well, it really depends on what you mean by "mission-critical" (well, really -- what "mission" is it so critical to). The main email server at my university has 4GB of RAM (proprietary Sun RAM). I'm not sure on the number of processors, but I do know that the whole setup is bandwidth limited (I/O bandwidth -- reading to/from the hard drives in particular) despite a massive RAID incorporating ... hmm, I just tried to look up the amount of drives but I couldn't find it anywhere. Anyway, it ain't no ordinary 4-disk stripe-and-mirror RAID lemme tell ya
Anyway, imagine if you had ~4,000 users, half of whom are using the inefficient POP email protocol (which reads/writes the entire inbox each time mail is checked) and 400 of whom log in interactively (i.e. using Pine, mutt, etc. as their email clients), and 95% of whom are connecting with a very fast connection (so there's no lag on the user's end).
But as said above, something "mission-critical" could easily be handled by a very 'lightweight' machine (w/ respect to processor, disk storage, etc.) if its 'mission' is something simple like routing.
Also you shouldn't necessarily look at a rack-mount machine. Rack-mounts are only useful if you have a rack to mount them on. And you probably won't buy a rack unless you're looking at buying 3-4 machines and their accompanying rackmount equipment (e.g.: external storage, power supply/UPS/etc, racks for modems etc.). Dell sells PowerEdge servers that look just like desktop machines. (@ my work we just got a new one w/ dual PIII-1400s, 1GB PC133 RAM, 2x70GB 10,000k SCSI HD's -- it will be used for web and email serving -- its main job (for now) will be sending out email to our mailing list -- we're looking at around 25,000 (non-spam, thank you very much) emails in a batch.. heheh, the first time we tried it, we almost crashed the aforementioned mail server for our University :Q

) If you're only going to be running one machine, it doesn't make any sense to go for a rackmount unless you have serious plans to expand later and you're going to actually *need* the rack for storage reasons.
reasons to go with SCSI for your RAID:
-hot-swappable
-much higher spindle speeds readily available (10k and 15k)
-faster data transfer rates
but the problem is that those higher spindle speeds also lead to a much greater failure rate. So you're right, disk failure does happen a lot more often in servers than in consumer machines. This is a necessary trade-off, however, and one that's expected (so folks running servers always have spare hard drives ready). But consumer drives typically don't back up their data very often, and they typically don't have the sort of redundancy that servers have, so the spindle speeds are kept down to lower the failure rate. Faster spinning = heat and noise.