First of all. Intel doesn't really compete with sustained performance on applications. They compete with performance on benchmarks. They also to a good deal compete with themselves, previous generations, and kind of ignore AMD. That's how they sell their new products.
To this they have good help from some close friends. Sandra, PCMark, SysMark. I'm sure the new 2005 benchies can be developed to take advantage of the 2GB L2 cache to show an "improvement".
Check out P4, P4B, P4C and P4E relative performance on successive PCMark/SysMark -2001,2002,2003,2004.