Intel can not compete on cost. AMD designed bulldozer to be very cheap. Intel would have to sell their chips at a loss to compete with bulldozer. Atom can not compete because its GPU sucks. Even an overclocked atom won't match Bulldozer. Also, tablets are just a fad. Besides, ARM is going to dominate tablets.
No one is looking for something amazing. Just something that will play wow at lowest settings, maybe connect to the HD TV to watch HD movies. This GPU and CPU can handle that for a low price. Plus, it is portable. Girls can stick it in their purse and guys can put it in their backpacks.
Are you confusing Bulldozer (Valencia/Zambezi) with Bobcat (Zacate/Ontario)?