"My point is that suppose at 65nm Precott blossoms to 5+ ghz at 83 watts, what happens to K8."
Again, I point to the history of the industry. Who were the big players, circa 1965? Who are the big players now? If 1965 is a big reach, try 1985. Most of those companies don't exist any more. It only takes a single big mistake to make a company a take over target. That is what Grove meant by his phrase "only the paranoid survive". When you are at near monopoly status, you are usually insufficently paranoid. That describes Intel to a "T". Will they survive? Probably. But remember, their original strength was in DRAM, a market they pioneered...