oefriday: you are one of the most shortsighted people on these boards, and that's quite an achievement.
You "high performance" rig?! try running Photoshop on that with any kind of high performance. Just because your interests run with browsing internet and listening to MP3's, tasks that, oh I don't know, a Treo could do nowadays, it is hardly an indication of what PCs are mainly used for (again, aside from your entertainment after you get home at 7 pm). With heavy multi-tasking, photo editing, video editing, sound work, and a multitude of other applications, demands grow. For most people on these boards, gaming is of primary concern.
In this instance, multi-cores are a little bit ahead of their time, but that is simply natural. In the normal world [before Vista], hardware drives the software, and not the other way around. There was no point in developing multi-threaded applications (even if Windows had the "capability" to do so) since it was generally more pain, and Windows scheduler is pretty lousy, so there was no gain, other than the theoretical supremacy of the resulting code.
Now, that the technology is available, you will see threaded applications (like those that have been running on multiprocessor workstations in the past), which will benefit tremendously from multiple cores.
In terms of games - those are some of the applications that lend themselves superbly to threading - physics, AI, graphics (already threaded, if you think about it - what is a GPU other than a specialized additional core? Just couldn’t package them together), sound. There are possibilities of threads within these major threads.
The point is, it is all about the availability of tools for developers, who will then utilize them.
And joefriday, the processors you named were the fastest in their day, that's why they were all the rage. Your comparison simply does not apply. Dual cores are, generally, clocked slower than their single core counterparts. It is not about speed, it is a different framework. It would help if you would give us examples that were relevant to the topic.