That may be their only recourse. They can't touch C2D right now. But, it has a similar feel to VIA's line of "power conscious" CPUs. Can't keep up on speed, design for low power. Oh, but they can keep the ratings the same. K! lol. Yuck.
It amazes me that my 11 month old Opteron 165 is basically still right around the top of the heap, at the 2.6 GHz I run it at. And 165 was introduced well over a year ago.
Considering the overclocking headroom of a Conroe (1 GHz oc with stock volts is common), AMD are in trouble. Can K8L do it for them? Kinda doubt it. I don't see it being the 30%-faster-than-K8 core that it needs to be to really get ahead.