Look at it this way Hellbinder. ATi will have to continue to make great products is all, Win/Win for everyone. Keeps Nvidia on their toes and keeps ATi from making mistakes. ATi doesn't have the capital to make a mistake and rise from it, although maybe they will if they keep producing better performing products instead of repackaging (trend's that suck).
To tell you the truth, I like the AMD/Intel scenario. Keeps innovation alive even in a poor market like we have had, didn't you notice that?