Well I don't see them competing at the high end for a while, that will require some creative core redesign. Intel have always and will maintain the process technology for a while yet, though you have to wonder getting smaller is going to be more difficult).
Hope they aren't done for yet though, they do have some good ideas and the whole APU thing has some great potential. The gpu compute side of things seems to be coming along quite nicely and if openCl continues to improve and they continue to aid developers with it, who knows. The APU side of things is pretty neat and if they can engineer things so that the cpu can seamlessly grab some gpu muscle
Trouble is what they are attempting is fiendishly complicated.
AMD seem to have some great ideas but their execution struggles. After all this time they still don't seem to have enabled the video hardware encoding in their videocard drivers and I imagine that even the older llano chips can get boost here.
They are doing the right thing I guess, the current x86 cores they have, whilst not bad by any means won't be stealing any speed crowns any time soon. Barring some floating point intensive workloads I'd be more than happy enough with the 8150, just not keen on the power draw for the performance on offer
At the end of the day, hope they do what they need to survive and innovate. Would be a sadder place without them and the forums would be quieter too lol