If you could please point out to me where on a technical level Intel is failing with Medfield, I'd be happy to agree with you. Here's the AnandTech review of the Intel Lava Xolo Phone:
CPU performance:
http://www.anandtech.com/show/5770/lava-xolo-x900-review-the-first-intel-medfield-phone/4
GPU performance:
http://www.anandtech.com/show/5770/lava-xolo-x900-review-the-first-intel-medfield-phone/5
Battery life:
http://www.anandtech.com/show/5770/lava-xolo-x900-review-the-first-intel-medfield-phone/6
Notice that Intel isn't at the extremes for each of those charts with bad performance or bad battery life. Granted, that doesn't mean there's an overwhelming reason
to use them, but there's noting really going against them either. And we're talking about a CPU core architecture that's been the same since 2008, wait until you see what Intel cranks out for 2012.
I think you are making the same mistake AMD did in 2005 that Intel makes hot chips that could never fit the thermal profiles of the next few years, right before Intel just kicked their ass up and down the street with the Core Duo and especially the Core 2 Duo. Intel spends more money on R&D than any other chip company out there. It is never wise to bet against them.