Petz, I disagree. Killing Itanic is not bad for AMD (as well as keeping it alive is also good for AMD). The reputation loss is unreparable.
I know you mean that that will open the door for 64 bit P4. But seriously, is the 64 bit the only thing that makes A64 good?
The fastest P4 is slower than the slowest Athlon 64 cpu, just in case someone forgot.
And then, what they will tell to Microsoft: "folks, we are very sorry, but can you please support our new 64 bit instruction set instead of the one you worked on for the last 3 years?".
Anyway, I agree that Itanium looks dead. But I don't think it matters how exactly it will die.