Malfunction I believe the answer to your question above lies in the interview you posted by Nympha Lee.
Granted the question was about 3,4 or 5 chip boards but ATI were making little money on the whole 9500/9500P/9700 lines. The chip they designed (R300) was an Uber chip and even killing off half the pipeline, removing the HyperZIII functions still lead to a redesign of a less Uber chip (the RV350) precisely because of cost. Even then other costs involved including the 256bit memory interface amount of RAM needed etc would mean a multi-cored RV350 (performance about that of a R350) would be helluva expensive.
CG: It's more a matter of you not wanting to offer a $600 card.
Lee: A $600 card might be a little beyond the market we want to pursue. We want to provide some type of value and $600 is a lot of money to ask of a gamer.
Granted the question was about 3,4 or 5 chip boards but ATI were making little money on the whole 9500/9500P/9700 lines. The chip they designed (R300) was an Uber chip and even killing off half the pipeline, removing the HyperZIII functions still lead to a redesign of a less Uber chip (the RV350) precisely because of cost. Even then other costs involved including the 256bit memory interface amount of RAM needed etc would mean a multi-cored RV350 (performance about that of a R350) would be helluva expensive.