I have been following this thread for awhile and thought I would jump in with my thoughts.
Before that let me say I own a GTX1080TI, GTX 1080, GTX1070TI, GTX1070, GTX780TI classified, AMD Radeon VII and have owned AMD RX480s, R9-290s, 5850s and many more both on the Nvidia and AMD side.
Nvidia is in the graphics arena to stay but so is AMD's RTG division.
There is no doubt that Nvidia is ahead in gpu performance. I think the Rad VII was rushed to market to give AMD a higher end card to stay relevant with the GTX1080TI, GTX2080 and perhaps even the GTX2080TI. I said relevant - in the same ballpark.
I skipped the Vega 56/64 releases, in part because the GTX1080TI, when I purchased it early on was such a good deal and I wanted to upgrade from the RX480s I had in CF. I already had a GTX1080 so it was easy. That's not a slap at Vega56/64 so much as it is a statement of the reality at the time.
The Rad VII is a strange card that I'm having loads of fun with. Though 7nm, it is still a refined GN card but with 16g of HBM2.
I switched my 4k 42" Acer monitor from my GTX1080TI/5960x rig to my Rad VII/2700x rig just because the Rad VII does so well in 4k. Almost as well as the GTX1080TI. My Dell 34" 3415W is servicing the GTX1080TI.
I suspect Navi should appear mid year to "battle it out" with Nvidia in the mid tier level-especially the hot GTX 1660TI. The Rad VII will have to hold down the fort at the top end until AMD refines a faster 7nm Navi based card to supplant it.
The predictions of AMD fading from the graphics scene were probably fueled by the leaving of Raji Koduri. I suspect he was disappointed that Dr. Su was so focused on Ryzen, and his perception that she undercut his development team. Plus a lucrative offer from Intel is hard to turn down, especially when Jim Keller is already there.
I find Dr. Su to be a brilliant strategist who is righting the AMD cpu ship (the mother ship as AMD was a cpu maker first) before fully funding the RTG division. Rory Read deserves credit for cost cutting and Dr, Su deserves credit for staying focused on the prize. I also notice that she has replaced persons with marketing "flambouyance" with quieter engineering-oriented leaders.
Thus, RTG will grow stronger. Console sales help the bottom line.
Will AMD go "toe to toe" with Nvidia in every gpu line? I doubt it. But it doesn't have to since it also includes a growing and robust cpu division.
Nvidia has to have the gpu sales it does to keep the ship moving, as gpu sales appears to be it's primary source of revenue.
If RTG stays competitive it helps Nvidia also.