That is Strange! Why would INTEL wants to cut into ATOM territory?The performance has to be seen from these Chips.
It's not cutting into Atom territory; server territory really "belongs" to the Xeons and Intel cripples the Atom to prevent them from stealing Xeon (or Core i-series) market share. The Atom is a chip targeted at uses where having an inexpensive chip with a relatively low power draw is paramount and everything else is secondary. The newest Pineview Atoms are now 64-bit CPUs, but do not support SpeedStep, hardware virtualization, ECC RAM, very much for PCI Express bandwidth, or more than 4 GB of RAM. These limitations make the Atom acceptable for only a very small number of server tasks. The Xeons conveniently don't have those limitations and thus are much more useful- and can command a price that's about an order of magnitude higher.