I'm going to go out on a limb and argue this is actually bad news for all involved. The desktop market is shrinking year over year, and adding pricing pressure is if anything likely to actually accelerate that trend. We're starting to hit the limits of conventional silicon and forcing Intel's hand here might do nothing but hurt Intel without giving AMD anything but a spoiler's reward.
In other words, if we're making songs:
Win the battle, lose the war!
Choice of evils lies before your feet,
retreat, retreat, retreat!
You are standing in Moore's Law's dark gloom
Cede an inch, and Chapter 7
All around ceding ground, in an ever shrinking room
And the die blazes red!