One interesting point the explanation for the negative performance centered on recalled notebook GPU, & lost of Intel Chipset business.
Very little information provided on the actual market acceptance of 480 families. Also missing is the cost impact of the 480 delays and yield issues. Nvidia’s CEO did not even comment on ATI being the new leader on discrete GPU market.
What the OP is failing to take into account is that before Fermi was officially announced, Nvidia had $1.5b in the bank with no debts. They knew they'd lose on Fermi whether it was good or not due to ATI having such a lead. So i don't think they're browning themselves just yet.