New Cinebench is aware of up to 48 cores.
To the gist of your argument: I don't think anyone is asserting imminent death of conventional CPUs here. But the consensus seems to be,
1) CPUs aren't getting much faster as they used to.
2) However, for a lot of applications, it doesn't matter because modern CPUs are already plenty fast for what they're meant to do. (or differently put, modern CPUs are fast enough to interact to humans who operate them)
3) In this circumstance, more and more focus is being given to visuals and concurrent workloads. And GPUs tend to excel at those.
4) Larrabee was/is Intel's answer to this developing trend.
You need not look further than HD video playback situation where a clip that pegs a dual-core CPU to the max is run effortlessly by a DXVA-enabled GPU. The dilemma of Intel is;
1) It can't sit by and let things go this way.
2) If it were to follow the trend through what it's good at (x86), it will cut into its own margins.
You see, I'm not sure whether a successful Larrabee would be what Intel really wanted. A gigantic leap in parallel performance which can also execute x86 codes? It could potentially jeopardize a huge portion of lucrative Xeon market which no doubt Intel doesn't want to lose.