> AppleTV, at 16-20W
> you're unlikely to get anything with a lower current draw
My 1 GHz VIA C7-M webserver, with solid-state hard drive, takes about the same. The key is finding an efficient power supply: even ones that claim high efficiency turn out to be rather poor if you're this far below their design power.
If that's not low enough for you, these people: http://www.embedian.com/ run their web site from one of their own 400 MHz ARM-based servers. (The site's a bit slow; not sure if that's due to the server or the damp string linking Britain and Taiwan.)
I have the impression that many people have massively over-spec co-located servers for their web sites (but of course I have no data to back up that claim). Unfortunately, the service providers make more profit from hosting over-spec systems, and the cost difference is sufficiently small that your typical medium-sized business will play it safe and choose the bigger box. Software bloat (*cough* PHP *cough*) is also largely to blame.
Anyway, as for Ashlee's proposition: yes, good plan. Personally I'd run my massively-parallel web application on boxes full of VIA chips. I think the biggest challenge is persuading people to pay a profitable price for it: if you're offering a "high performance" solution, with the right marketing you can trigger some sort of visceral reaction in the customer that will make them pay a premium. Selling low-power kit is much less "sexy", and you'll really need to sell it based on the bottom-line numbers in your spreadsheet. That gives you less space for profit.