Intel can't totally kill Itanium. They have to try and save a little face. They bet a good bit of the farm on a new unproven concept and it turned out to be a dud. And being Intel, they won't be totally compatible with AMD. The software makers will have to continue supporting two similar standards like the do now with MMX and 3DNow.
It looks like somebody at Intel is starting to come to their senses. Since they aren't in the dram memory business, they don't much care what the standard is as long as there is cheap fast memory that can keep up with their CPU's. Having the next standard get tied up in the courts and royalty problems wasn't going to do them any good. Rambus may win in the courts, while losing in the market place. Obsolete before it even gets off the drawing boards.
And no need to worry about CPU prices going up any time soon. Supply will stay way above demand. How many people need 3 ghz to do a little word processing and web surfing?