There is no way Intel has lost with the Prescott. I had hoped it would go big right from the get go, but it seems now that Prescott = 755 and most everything Prescott now is all about branding/positioning Prescott. For example, post-release I can't even find anywhere to get one. But who knows, maybe there's some good 478 Prescott potential to squeeze out. We'll just have to wait and see.
Right now is a tough time because A64 has momentum but needs (IMO) some fresh chipset/mobo blood and Prescott's potential will become clearer on its home mobo turf. And then there is all the PCI-ex, DDRII, etc. stuff coming. I am going to upgrade (build a second home system actually --> current system to wife), and I hope to squeeze in best performance at my price point without basically buying everything new. A64 looks good right now, but I definately won't rule out Prescott (or maybe even NW) even with all the recent "bad" press. Life's too short, my money's too limited, and AMD/Intel performance is too similar to play the brand loyalty game. Ultimately I hope AMD and Intel stay pretty much even round after round. If in some bizarre and very much unlikely twist of fate, the Prescott does lemon out, we might be the losers (in the short term). AMD can use the cash inflow (they aren't Intel!) and wouldn't have incentive to sell at lower prices, I suppose. In the longer term Intel is a formidible cpu force, and I would have a hard time betting against them in any way, even if I do have a little bit of a go underdog sentiment for AMD.