A couple points:
No company is 'turning' into another. The proverbial 'ball' was in in Intel's court and they've made (will make, technically) their play. Since these things take a long time, we wont see a proper response from AMD for a year, if not more. Despite what you might think, architecture changes take a long, long time to implement. Intel hasn't been sitting idly on their asses, ever, as the Conroe proves(will prove, IMO). Neither has AMD as the introduction of the K8 proved.
But a company has to do something in between major architecture changes, and changing chipsets/whatever is a good idea in terms of the bottom line.
Which brings me to my second point. Someone mentioned AMD being 'greedy'. Bullscheise. Why shouldn't a company charge a premium for a premium product? That only makes sense, no? Here I am, with the top performing CPU ever...and I'll sell it for chump-change simply to stroke the e-penises of fanboys everywhere. They are not there to help you build a good budget PC, they're there to make money.
I predict a very substantial price cut for AMD products when they stop being the leader.