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Dan:
The Mac is perfect for what you need and if you really need Windows, which you probably won't, you can run that too . . . on your Mac.
My experience is anecdotal as well, but since my first Mac 128k in 1984, I have never had a Mac die on me.
The big iMac would be a great choice, IMO, but even the 17 and 20 inchers have plenty of screen for most folks. Always safe to go 2GB on RAM as well.
Good luck on your choice and best to you!
Kurt
edit: A decent Photoshop alternative is Gimp/Gimpshop and it's free, FWIW.
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