IF the rumored ~250mm² are true, then i do not see much of a problem wrt financial competition. True, AMD may still have the advantage of using finer 55nm tech, but otoh they have both transistors not contributing to 3D performance (i.e. 2D, UVD which is supposedly on each chip) and the higher costs of board layout with two GPUs and eventually a still necessary PCIe-Bridge-Chip. Plus, their FB-sizes (though rumor has it, that this has been 'fixed' - well, wasn't really broken, but necessary 'til now) don't double, which is a major disadvantage of both 9800GX2 and HD3870 X2 which are supposed to be 'enthusiast' solutions, but do not have the FB-size of really supporting that badge.
UVD was 4.7mm2 on 65nm. That would make it about 3.5-4mm² on 55nm. Since native 2D engines have been dropped some time ago, I consider this hardly noteworthy. Furthermore, i´m not sure why you come to the conclusion that AMD´s higher PCB costs. Higher than a single RV670 SKU? Of course. Higher costs compared to an upcoming high-end NV SKU? Certainly not the case.
However, the bridge definately should go away, agreed. Which leaves us with the "wasted" framebuffer use, which should also be gone soon. I´m not completely sure how far research has come, regarding the now more widely recognized micro-stutters, but this should also be solvable.
Personally, I think the direction they´re heading is well thought-out. If every new ASIC they produce has RV670-like qualities and gives them at least something that is competitive, AMD is looking at a very bright future in the desktop GPU business. NV already did some pretty unconventional moves, which I didn´t see in years. If AMD can keep their release schedule up, this will get quite interesting.
Nvidia otoh may run into trouble with their large chip, as yields will definitely not be so good as with two smaller designs unless they have a massive amount of redundancy and maybe even release GT200 into the wild with not all (maybe 7 out of 8?) functional units enabled. Though more fine grained redundancy would be a better move in my books.
These are certainly good and valid points, but it´s questionable if NV really wants to disable some units on an high-end ASIC, where the margins are very high to begin with.
On a more general note:
Like Ailuros already wrote, i´m not exactly sure what the general consensus is, regarding "GT200". Personally, if I read numbers like the stated 384 SPs @ 1.5GHz, I´m not sure you can do that just yet (on 65nm/55nm), even on a (fully) custom-designed ASIC. And apart from what Ailuros wrote, the heat output of that ASIC would be enormous when running at full load. However, since currently there is only G92 to compare with, it´s hard to guess something like that. For one, I would be quite surprised if they didn´t change the SPs, that would be very unlike NV. Also, with that many SPs, think about the other units they would need, to keep that thing balanced.
That said, I'm really looking forward to see newer, more powerful GPUs after more than 18 months of stagnation - the curse of markets with small competition.
Since I´m not exactly in the market for high-end GPUs, I´m really looking forward to RV770.