News.com reports that Apple has announced the release of an iMac desktop designed specifically for education clients. Apple hopes that its compact design with a 2-inch frame will appeal to students facing space constraints in classrooms and dorms. The machine will feature a 17-inch screen and retail for $899. With this release, Apple will discontinue the eMac desktop unit. The new iMac will only be available through the Apple Store for Education, and offers a $400 discount from the normal cost of an iMac. However, this unit will feature a diminished graphics card and half of the disk space, which may limit interest from digital media enthusiasts…