The big problem I see is the rate in which Intel is eating it's children. The performance curve is shotting straight up to fend off AMD, while the system requirements are basically flat.
LOL, it's always better to cannibalize your own products with newer and better ones than let someone else do it for you. Perhaps you need to review why Intel's revenues were down in 2006. If the growth in x86 processor TAM is slowing that makes it even more important to increase share by keeping and expanding one's lead in product competitiveness.
Basically they need new management that can run a competitive business in the semi space.
Competitive? You basically say above that the problem with Intel is it is too competitive.
No, what you are asking for is good old fashioned European style corporate collusion to slow down innovation and hold prices and profits high. Legality aside, such gentleman's agreements require all players to be gentleman and respect historic division of market share. Maybe you haven't been keeping up with current events but that isn't AMD's plan and its management certainly aren't gentleman.
Market Data 
Markets 
AI
