Intel is still alive for one single reason: AMD's complex 65nm SOI process is not producing the clockspeeds as expected.
As we have seen, although its 65nm SOI is low power, AMD is unable to push clockspeed higher. The X2 6000+ (3GHZ) is manufactured on 90nm process. The highest performing 65nm AMD processor is clocked at 2.6GHZ.
Once AMD optimize its 65nm process, Intel will be dead in less than three months.
PS: One reader made some reasonably articulated comments on AMD's strategic moves such as K10 design and ATI acquisition -- a rare thing from an Inteler. However, as an Inteler, he could only look forward seven inches. The x86 market is completely different today with AMD being the industry standard setter in server, desktop and mobile. Whatever Intel does, it is just copying AMD's ideas. The only thing that is holding AMD back is its apparent difficulty with 65nm SOI process. In terms of architecture, AMD is years ahead of Intel. Although Intel has copied AMD64 instruction set, NX bit and emulated multi-core, Intel's architecture is stuck with the primitive FSB design. Once AMD rolls out Direct Architecture 2.0 on fast clocks, Intel will look retarded. There are rumors that Intel will copy more from AMD, such as distributed memory architecture, direct connect and embedded memory controllers. But those are still on the paper.
AMD got everything in place to finish Intel. The only thing it needs to do now is to get 65nm SOI to work faster.