"Intel is an unstoppable force in the CPU industry. Just give it a couple years and they will be the dominant player in whatever they are pursuing (in this case, phones and tablets)."
Yeah, like graphics, HPC, those lovely Itanium chips... Chipzilla never fails...
/sarcasm
You're clearly misinformed. 3.5w for a non-SOC is not within striking distance of ARM. They still need additional silicon for the rest of the phone to function, and that draws power. 5w total vs. 1 to 2w is not even close, it's still 2-4 times the power and heat, and 1/2 to 1/4 the battery life. Intel isn't offering anything that ARM doesn't, and contrary to what Intel marketing is trying get you to believe, they aren't offering superior performance. ARM can easily add more cores and higher clocks, Intel can't.