Release times will slow down because Moore's law can't hold true indefinitely. Processes can't shrink much more and besides their new transistors they were already strugging to do anything innovative beyond their already great Core2 architecture, to just keep refining that as much as they could.
Without this innovation, price ceilings will drop as there isn't any longer as significant a performance gain. Today we even see people rejecting performance gains, deciding they want yesterday's performance and Windows XP instead of Vista to save some money. Fuel prices certainly aren't helping the situation either, people are re-evaluating what their true needs are, it's not as geeky trendy anymore to declare you have the fastest PC on the block because any Tom, Dick or Harry can get close enough if they want to throw a few hundred dollars Dell's direction.
AMD does not have to match this price. All AMD has to do is offer something fast enough for most common uses (email, surfing, office, etc) which they already had, at an attractive price point. Every year the need to keep improving performance goes down, most people with a mere 2 cored CPU aren't using 10% of their processing capability on average, might not ever peg a dual core at 100% usage per core.