When was the last time AMD shrunk their flagship and called it a RV sku?
When was the last time AMD's flagship had to be discounted because it could only compete with the competition's second tier parts? This wasn't exactly R580 vs G71 now was it? R600 was already in the "performance" bracket six months ago at launch. Why would you expect a new chip to be much slower? You mention high-clocks but that's irrelevant. What we're discussing here is performance levels. Whether RV670 got there through high-clocks or by retaining all of R600's units doesn't really matter. My overarching point is that the performance of the 8800GT isn't "too good to be true". The 6600GT did the same thing and the 7600 as well to some extent. It just looks like the second coming because the 8600 and 2600 lines were so pitiful.
This is the first and one that caught Nvidia offguard. However they managed to combat the situation albeit messing up their lineup.
The only thing messed up is the naming, not the performance. The $250-$300 part is exactly where it should be a year after the initial architecture launch. In your theory exactly what would would be done with all those low volume 96/112/128 shader parts after the 64 shader SKU volume was satisfied?