See Edrick, someone understands Economics 101. And yes, competition is only half the reasons why prices will go down.
If AMD had Bulldozer matching or coming close to SB-E performance, they would put immense pressure on Intel if they had priced it below Intel's offering. Then, Intel would had no choice but to lower their prices or lose sales. Maybe they would collude to fix prices (which is illegal just as abusing a monopoly is illegal) but that is another issue.
If you look at a healthy market like smartphones, there are equal offerings for most market segments: iPhone 3GS, 4, 4S all with variable capacity, processor speeds, features and memory. Same thing as video card market, from a crappy Radeon 6300some to a 6990, there are SKUs for every possible market segment because the companies are ferociously to get customers.
But, because the x86 processor is an unhealthy market, Intel can do whatever they want with features and prices. 2500K has Intel 3000HD yet 2500 doesn't? One has VT-d the other doesn't and so on. Intel can artificially limit their processors because there is no healthy competition. Which is part of the point of the AT article: Intel has no technological hindrance in making an IB 6 core CPU for 300-400$ working on 1155 platform, but they don't do it because it would cannibalize the much higher margin 2011 platform and the only reason they can do this is because AMD sucks.