<< The best price on a 7500 is $159 + S&H.
The best price on a GF2 Ti is $129 + S&H.
Unless the next driver set really boosts the speed of the 7500 to a GF3 Ti 200 (which is doubtful), then it should drop in price. Otherwise it won't sell well ... or at all. >>
I think some at least would purchase the R7500 instead. Dual Display, DVI, and TV-Out, as well as the best DVD playback available, and generally better 2D visual quality would be well worth it for only $30 extra for many people.
Besides the enthusiast gaming crowd to whom gaming performance means everything the R7500 offers a lot of features and quite respectable performance at a decent price point.
I'd tahe the GF3 Ti 200 over the Radeon 7500 personally, but I can well see a number of people accepting the slower R7500 in order to get it's extra features.
I'd definitely go with the R7500 over the GF2 Ti... better performance and far more features.