Very interesting analysis, thanks.

I think the argument about area and cost - and Intel's processing advantage -
is all correct. What may be missing is the impact of the different business
strategies: Intel really wants to sell those server cpus at very high margins -
say 300mm2 of silicon for $1500. But it's going to be facing a lot of competitors
from the ARM/cellphone world, e.g. Qualcomm, who would be very happy to sell
10M server cpu's at dramatically lower margins. Intel's technical advantages
alone won't allow them to preserve their high margins on server products (just
as the advantages of RISC servers couldn't protect them against Intel's high-volume
good-enough-and-much-cheaper P6). The future may still be predominantly x86 -
but the business will look very different.