Solaris knows that high end risc is a dead end nowadays. The big iron days are going the way of the mainframe.
(they are going to stuck in small relatively minor niche roles with few growth prospects).
Sparc is aiming for the datacenter with it's multiple threading core and they need to go to x86 to expand. That's were the future is for them.
If they don't make a big spash on the x86 then the server market is just going to get more and more and more linux-centric until it gets uncompatable with Unix stuff (that's one of Sun's big smears at Redhat, that they are using open source and propriatory standards to try to lock-in customers, which for the most part is BS.) and Solaris gets forced out of the market.
Otherwise Sun will end up like SCO and just survive making decent profits supporting legacy platforms and end up growing more and more obscure and unimportant as the RISC market dries up and they die a slow death 15-20 years from now. They need to get a large userbase now to try to prevent that from happening and ensure survival and actual growth in the forseeable future.
That and before Sun didn't take x86 seriously because x86 wasn't a threat, it wasn't compitition. Now you have Linux clustering technology + AMD64 + Linux 2.6 soon means that you can build a array of machines that will outperform and out-reliable the old big risc machines at a fraction of the price.
Say you have one risc machine you have one point of failure. Even though it's 99.99 percent reliable. Now take 95.0 percent reliable PC, not to impressive. Now take 12 95.0% reliable PC and have them mirror information and have them be used in a combo high-aviability and high-performance cluster. If done right you outperform and have better reliability then the big risc machines.
Look at how they do things like livejournal.org. That's pure Linux software, running a massive database and all of it's dynamicly created. They have 5,325,841 accounts and within the last 24 hours they have had 342,065 of them being updated by their users. They have it all running on rendundant machines, all the web server are completely diskless and run on RAM only. They need more performance? They plug another machine into the network and keep the old ones around until they aren't worth the electricity and room they are taking up. Multiple rendundant database backends, numerious machines in a distributed archatecture. All sorts of fun stuff and all custom designed and maintained by a mostly volenteer staff. All open source all using what would be considured "subpar" software by a lot of people... Lots of mysql and perl stuff. All very weird and relatively dirt cheap high performance and high aviability stuff. Users modify software on accounts, set things up to e-mail them or page them or call them on their cell phones to indicate changes and such. Having to deal with vindictive and immature user base.
Now it's not without it's issues, and is constantly evolving and changing, but you have to see the potential of this sort of thing. How much would it cost in Sparc hardware to get close to being able to do the same thing?
You have things like
openssi and openmosix that are getting close to making and building clusters a almost brain-dead affar. Plug-n-play type stuff. In a few years it will be very mature. Your starting to see good distributed file systems for Linux for free and all sorts of fun stuff.
Redhat has it's stuff it's working on and is buying up software left and right and openning it up. Like GFS filing systems. Netscape's directory software, and other stuff. Also working on the "stateless Linux' type stuff were you plug a PC with a blank disk into a network and within a few minutes you have a fully functional workstation, a thick client with local disk for users that are backed up automaticly with a central server. Think Knoppix, but loading up over the network instead of the cdrom. That type of stuff. Not to also mention what Novell is doing and IBM is going to use Linux to push Power and PowerPC, and Sparc isn't close to being competative in raw performance with Power stuff right now.
All sorts of crazy stuff. People will need Sparc type stuff for a long long time and will pay big prices for it and keep Sun profitable, but it's a shrinking market. Each year that goes buy it's getting a smaller and smaller niche. Solaris desperetly needs to be part of the action. And if they pull it off it and do a good job with licensing it can be great. Linux has and will always have certain limitations in it's design and developer attitude, that rub people the wrong way. And monoculture sucks, even if it will be only Linux. Diversity = good.
But Sun says and does things very strangly...