Looking at it from an objective standpoint, nVidia should be able to make a strong performance comeback. They have the capital, the patents, the engineers and a strong relationship with their silicon foundry. Plus, they still have the large volume OEMs.
Subjectively, for some time now, they've felt like a company that
a, has started to believe their own hype.
b, lost their focus when they totally dominated performance 3D, and started branching out in order to expand their business.
Jen-hsun has made very strange statements regarding the speed of gfx-chip speed development, that GPUs will overtake CPUs in importance, just a few days ago he said that nVidia will take 50% of AMD K7 chipset business, when the current situation after the nForce1 and 2 is that nVidia hold a measly 5% share. What would cause them to grow by a factor of 10, particularly as they don't seem to have any further products to bring to the table? It smacks of more than being bullish, it smacks of having lost touch with reality. To what extent that affects their engineering efforts is impossible to say.
But their gfx-lineup from April/May onwards (NV30, NV31, NV34) seem to have been designed as if nVidia operated in a competition free vacuum.
The situation with the NV30 may or may not have been a wake-up call, but even if they have shifted into high gear, it takes time to push new designs into the marketplace, and nVidia cannot move aggressively to new lithographic processes unless someone makes them available.
In spite of their experiences with the NV30, I think they will try to implement the most advanced process TSMC can offer. They have the cash to absorb the cost of low yields, if deemed necessary. Doing so with the NV30 doesn't make much sense though, since it is outperformed by the R9800 no matter what. But if it can bring a new design on a new process to market faster, they probably will. The power of your brand name sells your products, and the nVidia brandname is being tarnished at an alarming rate.
They are sure to try to do something about it.
Entropy