You seem to be remembering the Pentium 4 through rose tinted glasses. Northwood-C was the only time the P4 looked like a good buy, during the rest of it's run it was looking very much akin to Bulldozer.
It happened earlier than that. Northwood-A was about level with the contemporary Athlon XPs in a lot of areas, and Northwood-B really started racing ahead thanks to AMD getting tripped up by their initial batch of 130nm chips turning out to be less Thoroughbreds and more wheezing old donkeys. AMD clawed some ground back thanks to the latter Thoroughbreds and then Barton, but then Northwood-C arrived on the scene and it was game over for the K7 line.
True, you could make the argument that the Athlon XP represented a better deal than the various P4 flavours, since it was generally quite a bit cheaper, but the Northwood range as a whole was a good performer. Heck, it even managed to put up a decent fight against the early Athlon 64s, until they moved onto S939 and got higher clockspeeds.
