In all likelyhood, Intel has accounted for what I'm about to say (they're not a billion dollar company because they're a collection of idiots) but I'll say it anyways.
I think a good take on the future of processors is in this article:
Good article on what the future is like
I think the harsh reality is that for the vast, vast majority of all consumers - a 1.5 ghz chip is perhaps massive overkill. For the typical person surfing the internet, checking email, doing word processing, watching DVD's, playing MP3's, and so on, having a 10 ghz chip would be equivalant to owning a desert eagle for hunting spiders in the house. It'd sure be neato, but in the long run a nice twenty two pistol would probably suffice

. Further evidence of this is witnessed in the degrading profits of Intel and AMD, and also an industry that squeaks by with a tiny percentage of profit compared to their overall expendature - and it's only going to get worse, since I know people who still use 733 mhz processors and don't mind at all.
Hell, my primary workstation is a p2-400. Why? It does EVERYTHING I need it to (and acts as my primary web server whist doing said tasks), and I see almost no reason to upgrade. Recently I've been looking at upgrading to a Tualatin Celeron processor (at 40 bucks, "my" kind of upgrade) at 1.1ghz, but even that (for me) is like shooting mice with a Desert Eagle. Unlike the past, consumers are not going to pay hard cash to upgrade every eight months to something that does almost nothing that much better. To quote the article, "consumers are waiting five years or even longer between upgrades, rather than buying a new machine every two or three years like they used to."
Granted, some of us have needs that would make a 10 ghz processor quite a lucrative or attractive piece of hardware, but I think the harsh reality is that AMD and Intel are going to focus on reducing their costs more than they'll focus on increasing the speed (although, in the computing world, those things tend to go hand in hand). Of course, they have to be competitive - but gone is the time in which people the typical consumer buys a new computer ever year or two. The proof is in the pudding, and also the 400 mhz chip I use for day to day tasks.
To conclude with yet another excerpt from the article:
"All of this is bad news for Intel because its phenomenal success was built on a simple yet scorchingly effective strategy. Megahertz-hungry users would pay premiums for the latest, fastest chips from Intel. The windfall profits were ploughed back into developing the next generation of faster processors. By introducing newer chips faster than any other rival, Intel was able to maintain a virtual monopoly, resulting in billions in profits and gross margins in excess of 50%. But now the old recipe for growth no longer works.
So what's the way out? Intel needs to shift its all-consuming focus away from raw performance and set its sights on lowering the costs of its chips."
Cheers.
Kidjan