The fanboy/enthusiest market is only a small drop in a very large ocean compared to the OEM sector. We would be lucky to make up 1% of the market. AMD and Intel both make their money off the OEMs (Dell & HP etc).
AMD have always had a relatively small marketshare. Before the K6-2 came along Intel had complete ownership. AMD's marketshare back in 2000 was something like 20%, and this was when the K7 was completely dominating the P3 in both performance and price. 2010 marketshare is still 80% to intel, 12% to Intel and 7% to other (most likely VIA) (which is a bit of a shame because in 2008 it was 75% Intel, 20% AMD).
Whether you are in camp AMD or Intel unless you are the director of HP, Dell, Sony, Microsoft, Nintendo, or any other multinational company which has desktop and server PCs which number in the tens of thousands, your purchase of an Intel or AMD processor for your single PC at home will not make one difference to whether AMD or Intel make money.
Things AMD have done to push Intel
* K6 processor
* K7 "Athlon" processor (Athlon 550-950 processors were awesome)
* 1st to break the Ghz mark (Not really a great performer, but it was cool for epeen rights)
* Athlon XP series (proving efficiancy > ghz)
* Athlon 64 (Intels original foray into 64bit was very expensive for home users, and couldnt run 32bit applications. AMD )
* The Opteron (a lot of business' thank AMD for providing Intel some competition in this area. The first opterons actually performed faster, were cooler, and drew less power)
Things Intel beat AMD in (but probably wouldnt have done if AMD didnt exist)
* Dual core processors (would we even have these if it wasnt for the race between AMD and Intel)
* Core 2 Duo (<- Awesomeness packed into tiny nanometer goodness)
* Intel quad cores (Q6600 = pro)
* I7 (im still at a loss as to why AMD havent figured out their secret, its been 2 years goddamit)
Things Intel Failed at
* RD-Ram - Proving the "Dont believe the hype" should be adhered to
* Itanium - 64bit fail
Reasons why Intel will probably be dominating the next decade
* Intel Marketing - Intel has its fingers in pretty much every pie (HP, Dell, Sony, Xbox etc). Its going to take years to break that dominance
The answer to the OP's original question is no, Intel havent killed off AMD. Intel fanboys have a lot to thank AMD for. If it wasnt for AMD pushing Intel to perform, the processors available to the public would be 5 years behind what it is now, and the processors that are available today to the home market would be only available to the large corporate sectors.
Im pretty sure AMD are quite safe even with their current sales. AMD is currently making roughly $1.5bn per quarter (so just imagine how much Intel are making with their 80% share). I doubt AMD is going to be poverty stricken, I dont think we all need to say a prayer, and i dont think its in any dire situation where the receivers are being called in.