Yeah, I have to agree with oompa. The 7600GT does very well for a 12-pipe 128-bit card. It definately deserves consideration. There aren't any direct comparisons yet, but I still think the X850XT would win or edge it out in more games than not. But, he is correct, the 7600GT>6800GS, so it's gaining on the X850XT at least.
There aren't any $169 7600GT's yet, so until I see the 7600GT clearly holding it's own against the X850XT, the Radeon still gets my vote. If they practically tie, then I could see paying $20 more for the 7600GT's features. But I would not pay more for a slower card just for SM3.0; especially not a midrange card that will struggle with Sm3 eye candy already, never mind in more stressful future titles.