The ATI 2600 cards aren't getting the nod as good gaming cards with many people recommending the older X1950XT over it.
The two cards are compared on this chart (using Doom 3) with both showing up in blue
VGA Charts 2007 | Tom's Hardware
Keep in mind that this is comparing XT models and that the Pro model found in the iMac is a slower card.
The problem with the 2600 is not limited to poor drivers (though they are a problem), the cards themselves have only 120 unified pixel shaders compared to the 2900 which has 320. The 2600 also only has 128k of L2 cache compared to 256 with the 2900.
The 2400, also found in the iMac, has only 40 unified pixel shaders and no L2 cache.
While the 2900 has four render back ends, the 2600 and 2400 only have one.
The consensus I get from several reviews is that this current generation of graphics cards is missing the mid-range option. The 8800 and 2900 cards are high performance with a high price tag (with the edge going to the 8800s) and everything else is basically a budget card of vary strengths.
Take a look at the following chart based on Battlefield 2142 which was released last Christmas:
VGA Charts 2007 | Tom's Hardware
The 2600XT got 17 fps, and the 2400XT got 7.4 fps, even if new drivers managed to double those numbers, how well do you think either will handle games like Crysis, Far Cry 2, Gears of War, Bioshock, UT3 or Rage?
The answer is that they won't handle them well, probably requiring minimum settings for a decent frame rate, because they aren't gaming cards and while the 8600's did slightly better, they aren't going to be able to handle these new games very well either. Again, these are XT numbers and the iMac has the slower Pro line in it.
Looking at those charts and looking at prices at Memory Express in Calgary (typically less expensive than Best Buy or other retail outlets) I can get the following:
8800 Ultra - $670.00
8800 GTX - $650.00
7950GT (AGP) - $279.00
8800GTS - $379.00
2900XT - $500.00
X1950XT - $309.95
The card found in the iMac, the 2600 Pro is valued at $119.95 and an 8600 GT costs the same. Again, neither of these cards looks like it will be of much use to a gamer if you want to play the next batch of games coming down the pipes.
Right now, your best value per FPS is the 7950 GT, which isn't a DX10 card but has plenty of power for less than $300. The Nvidia 8800GTS is the least expensive DX10 card though it has no better performance then the 7950 and costs $100 more.
The only Mac I see that has any kind of future gaming potential is a MacPro with an ATI X1900XT card in it (which can be upgraded when necessary). Everything else isn't going to perform well with upcoming titles. It is also pretty expensive for what you get out of the box gaming wise.