you are right... technology wise, it won't happen.
however in terms of sales... they have and will continue to.
Yup, just like shitty guitars always have and always will sell better then high end ones.
the epi vs. gib comparison is a good one although gibson manufactures epiphone so both are in the clear
Thats true.
Not even my point. To call AMD a "bad knockoff" just wrong. AMD chips use Intel's previous generation chips and research every way possible to squeeze every last drop of performance out of them. The result, a previous generation ship that performs about 70-80% that of the new generation and because its low tech, is a hell of a lot cheaper. The deal is that AMD chips being much cheaper and almost as good, appeal to a wider range especially after the economy crash where only people/businesses that have the extra cash to drop on the absolute fastest technology to date are few.
The bad knock-off part wasnt quite as literal as you seem to have taken it, but my overall point still stands.
AMD doesn't have any leverage on Intel apart from the price, but at the same time they never manage to match Intel's top speeds and stability.
And regarding performance -> money ratio: Intels are MUCH safer to overclock then AMD's.
If you take an AMD and an Intel with the same basic performance(Lets say both are running at 3,2ghz.), then you could easily overclock the Intel to 3,8ghz still running on air(Running stable i might add.), while the AMD would need water-cooling to retain stability(Which would let the Intel run even faster.).
So sure, the Intel might cost slightly more then the AMD, but when you take overclocking in to consideration the Intel wins by far.
With AMD's line of graphics cards, the fact is, this is the first time that they have a previous generation card that is still faster than anything NVIDIA has made in their newest generation, it is only a matter of time before their CPUs do the same. In order to keep sales, Intel has to convince their target audience that they NEED the fastest over Price-to-Performance, then they will be back in the game. The way they do it, is by making their audience realize that their favorite celebs are using Intel and if they want to be "cool" like said celebs, then they HAVE to get Intel. Like I said before, its not about which chip performs better, its about which chip sells the most and for the past few years, AMDs sales are doing better, where Intel has been struggling to keep up.
On this part i have no idea, as i haven't been looking in to the graphics side of things for a while.
But there is another catch right here: Developers choose nvidia.
This results in nvidia always having the latest technology plus the factor that the games are optimized with their gpu's in mind.
But as i said, i havent stayed on track about the gpu-part lately, so it might be so that nvidia is slowly loosing their leverage.
Anyways, Intel wont be threatened by AMD in the near future as Intel always will be the high-end product(PC's isn't the only part of the CPU-market.).
Also, even if AMD manages to create faster processors with the older generation(Which i highly doubt they ever will.), they wont get to the next generation without Intel creating it.
I will build my computers on Intel, Nvidia, Asus and Corsair as long as possible, simply because they've always been stable and easy to overclock(If needed.).
That being said, i dont care at all what people use in their computers.. but my personal experience is that AMD and ATI always comes with some comparability/performance issues(I've personally never owned an AMD though.. ).