So wait - NVIDIA is investing significant resources in an optimized ARM-to-x86 hardware translation engine, and ARM would care so little as to not give them very preferential access to Eagle's architecture? It would be funny if it wasn't so absurd. Keep in mind also that T50 isn't the first Eagle-based Tegra: that's T40, which is an ARM-only quad-core on TSMC 28HPM.
I also completely fail to understand how this would not fit under the "without using non-native execution" clause. There's one very critical difference between NVIDIA's approach and Transmeta's: in the latter's case, it was the CPU core itself which handled the translation mechanism. In NVIDIA's case, it will be a discrete component that could easily be power-gated off when running ARM binaries (in order to be competitive with OMAP and the like).
From a legal perspective, NVIDIA could rightfully argue that what they have implemented is a x86 hardware emulator connected to an ARM microprocessor. This is clearly even more defensible than Transmeta's approach, and seems to very easily fit in the FTC's settlement's wording even if Intel disagreed. And an (ideally configurable/programmable but highly specialised) off-core block might even mean slightly better efficiency than Transmeta's approach.
But do not think I am cheerleading here. I am very skeptical that they will achieve their goals from a technical (performance and power) perspective. I suspect Eagle will have comparable or slightly higher performance relative to Atom's successor in that timeframe. Combined with the translation mechanism, I can't really see how they will beat Intel on performance, and they'll lose a fair bit of the power advantage unless their design is really incredible. Just making it work with decent performance would be a technological tour-de-force, but actually making it attractive overall in an ultra-competitive market would rightfully blow a lot of people's minds so I understand Charlie's skepticism even if I don't agree with several of his reasons.
My understanding of NVIDIA's process evolution for Tegra is as follows: T30=28LPT, T40=28HPM, T50=20HPM (LPT=SiON & HPM = High-K, all triple gate oxide). So the one consolation is that if both they and TSMC don't suffer any significant delays (well, we'll see about that) they might not really be at a substantial process disadvantage versus Intel. They do suffer execution risk from being that aggressive though.
EDIT: Assuming Charlie is correct, I'd like to point out I correctly speculated about this in March without any insider info - who needs sources when you've got a brain?
I didn't touch on the technical challenges then though, but my point about it having a better risk-reward ratio than a from-the-grounds-up x86 core stands:
http://forum.beyond3d.com/showpost.php?p=1409915&postcount=2170