no XServe were not expensive than PC Servers apparently you forgot about Va. Tech which had a thousand G5 at low cost and the fastest that time around.
Keep in mind, they had G5 when G5 came out then later new XServe G5 came out then they upgraded (replaced their G5) to XServes.
check out their site;
http://www.tcf.vt.edu/
This url show video of their G5 that time before upgrade to XServe last year
http://www.apple.com/hardware/video/virginiatech/
Apple Profile on Va Tech running XServe G5
http://www.apple.com/science/profiles/vatech2/
You have to remember that Apple products has lowest TCO (Total Cost of Ownership) That's one of many reason that Va Tech decided to go with Apple's G5 Products.