That's a much more sensible take, Dave. The only reason I doubted it was because I thought it would be hard to know exactly how a chip may fail (i.e., are the pipes structured in a way that makes disabling half easy? are the pipes the most failure-prone component? will it have cut-down vertex shaders as well?) Also, I figured that if yields were good, ATi could always just sell a slower 8-pipe part as a 9700 (non-Pro). At this point, are we even going to see 9700's, or is ATi trying to make as much as they can with a premium part? Even nVidia released both the 4600 and 4400 simultaneously, IIRC, while they postponed the 4200.
If the 9500 Pro is indeed an R300 with slower memory, it should sell extremely well, as I'd wager people can settle for 10x7 for half the price. I'm not sure why they wouldn't pay the extra $40 for double the pipes, though. I guess we'll see street prices for the 4-pipe 9500 go much lower than those for the 9500 Pro.
Anyway, it's nice to see ATi pick up nV's slack and continue driving the market forward. I might just put off getting a cheap 8500/4200 and wait for a reasonable 9500/Pro.