There's no big deal: Intel is simply doing its homework. What could we expect from the biggest CPU maker? It sounds like vaporware: "Oh! look at how fantastic our next product's features are going to be! Everything else will be obsolete by the time it launches...". Probably, I would do the same - just as anybody else who wants to introduce something new in the market. There's no reason to flame Intel right now. They have some of the best engineers, so, let them give it a try. If it turns out to be the wrong approach there will be thousands of others (huh, probably just 2, in this case). But what about Nvidia? "The CPU doesn't need to become any faster"? Oh, p-l-e-a-s-e. Right. That's why you need a 2.6 - 3.0 Ghz Core 2 CPU to fully utilize your GeForce, right? I want to see Huang's face if Nehalem gives an astonishing boost to his cards and SLI (ah, erh... sorry. Just Crossfire for Nehalem). Maybe the 9 series are being ultra-bottlenecked by current CPUs and they weren't just a gimmick!!! Tell me an application that really benefits from the GPU, except games and video-related ones. Well, the next Photoshop. How many people have a discrete graphics card in their rigs, let alone a reasonable one? Even if things like CUDA ever take off what will be the benefit to Joe Average? Will he spend $100+ for it? The difference is that the CPU can speed "everything" and that's what everyone (almost) looks at:
Joe A. : "How many Gigahurtz/Cores does this computer have?"
Geek Squad attendant: "Well, it has four cores, you know."
Joe A. : "Four??! GEEZ! MY WINDOWS WILL BOOT INSTANTLY!!! FINALLY!"
Geek Squad attendant: "ACTUALLY, you can buy this nice GFX card, since many applications are optimized to work faster with it."
Joe A. : "Does it have FOUR cores?! Well, I don't need to play my movies any faster... I will miss the better scenes!"
Geek Squad attendant: "well.... I was talking about the whole computer being faster..."
Joe A. : "You really want my money, heh? O-K, smart-ass! So, the next thing you're going to tell me is to buy a sound-card, so that EXCEL will run faster, right?"
Geek Squad attendant: "... let's talk about that quad-core again."
Well, I don't mind having a 9800GX2 if I can't run even Windows XP without waiting 5 minutes until it becomes responsive. Nvidia says that a "hybrid approach" is the way to go because it is the *ONLY* way they can go. Besides, it's not a fight like "David vs Goliath" - it's more like "God vs Ant". If Intel loses the first round: give it a rest, some millions and let's go to round 2. If Nvidia loses the first round: investors crying desperately while buying Intel shares, "WTF! GRAPHICS CARDS ARE DEAD!!!...", panicking. Nvidia can become the next AMD if it fails by the time Larrabee launches: Intel will simply have another chance.
Nvidia is not the little-good-hearted boy vs the monopolist giant - just as Intel isn't the godsend who wants to make the world a better place. Both of them think with their wallets and their marketshare graphs. Should we care about who will win?