... but the Cube was expensive so buyers went for minimal RAM—and then you do not, but really NOT, want to be on the receiving end of the experience of using a computer which has its swap memory on M/O.
I guess we could say that Steve Jobs always had a bad habit of crippling his computers with respect to storage and then overcharging customers for a solution—and that this legacy is still very well alive at Apple.
Back in the days, though, it was simple enough to put a regular SCSI hard drive in the Cube.
This Q/A with Steve Jobs at WWDC 1997 puts his way of thinking into perspective:
Apple's World Wide Developers Conference 1997 with Steve Jobs
(The relevant remarks begin at 10 min, with Jobs considering "network computing")
We see in his presentation that Jobs saw the concern through a certain lens of his personal preferences and plans.
My guess is that when marketing developed models showing how to extract max profits from up-sells on storage, Jobs offered no back-pressure, because he believed all his data should be on a server.
It's not that Apple doesn't understand price-points. Their awareness was on high display during 2006 WWDC, when the Mac Pro is introduced. Phil Schiller doesn't make a price pitch about storage, but he makes a big pitch about Mac Pro Quad-core Xeon, with 2x perf over PowerMac G5 tower, coming in at the low base price of $2499, which he argues was great deal on a gorgeous design. And I happen to agree.
My reasoning is that it's not that Apple doesn't appreciate the concern of price— They know when it matters. And with the Intel Mac Pro they conceded out of concern that the switch to Intel was a risk and so offered a great deal to ensure no backlash. But when they know when to compromise, they understand profits at least as well.
My guess is that Jobs didn't think the system should have any more storage than needed to be a network node, and it was part his long game to capture users into his networked computer vision. Along the way, storage up-sells delivered excellent margins while the iCloud story was assembled for Jobs' way of thinking. In the end, users were able to decide for themselves on storage — the design was far from weak on the matter — and if customers continued to gush about how insanely great Macs were in so many other ways, then unhappy customers had no one to blame but themselves for being stingey. And, if they didn't understand their own storage needs, then who could be the wiser. Pretty smart on Apple's part.