I was browsing Apple specs and saw that any machine 500MHz or below was considered vintage now. Does this mean that the Dual 500MHz Gigabit G4s are considered "Vintage"
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Very much so.
As far as Apple is concerned, anything the company sells that's between 5 and 7 years old is considered "vintage." If it's older than 7 years, it's "obsolete." (The source is here: https://support.apple.com/en-us/102772)
In general parlance, "vintage" refers to anything that's over 20 years old or so, which any G4 model would also fit.
What is considered "vintage" is entirely arbitrary and depends on who you ask.
The word literally means "grape harvest" and came to refer to a wine that was bottled from a single year's harvest, which only happens when the grapes are of particularly high quality due to the growth conditions. It then came to be used in a more general sense for collectible items of high quality that are strongly associated with a particular past era. For example, "vintage" cars are from the era of the Model T Ford or the Duesenberg, but only if they are well maintained. If they are just rotting in a barn, the correct word is "junk".
These days there are "vintage computer" organizations, who apply the term so exhaustively that it encompasses practically anything. A 2000 Dell shitbox with a Pentium 4 counts as "vintage" according to some people, and the quality aspect has basically been forgotten.