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I would go with the 12" PB and 20" display - you can get an external drive to add storage. There are plenty out there and not budget breaking.
If you are used to the portablility and the power and functionality of the Powerbook, you may be disappointed with the iBook. The other consideration is RAM. More RAM in the PB.
The iMic is OK - just OK. The advantage of the powerbook is that you can connect a midi, if you need to do so. Also the audio in is self powered/amp'd, so you don't need to be preamped. Whereas in the iBook, you need to preamp your Audio In, hence the need for an item such as the iMic.
Reality is - what works best for you.
I have gone from a 17" PB with a 23" Display to a G5 Dual 2.7 and 8 Gigs of RAm, now. My intention is to get another PB, possibly after MacWorld - but just to see if anything really is happening. It really is time for a major PowerBook upgrade - and wouldn't that just take the pi$$ outta everyone if Jobs intro'd PBs first in the new Intel Architecture.
Good luck, no matter your choice, it will be a good one.
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