That's a very pesamistic out look, sure AMD's focus has shifted but to say that means the death of all future development is ridiculous. Maybe it won't be the AMD vs Intel title fight we are all used to but something will keep the progress going.
Its a good tactic though, the Core 2 architecture was evolved from low power Pentium M tech (itself loosely based on P3 designs), it was focusing on low power/embedded alternatives instead of a desktop CPU that sucked that allowed Intel to start to fight back against AMD a few years ago, AMD just need to do the same thing and from what you have said their well on the way.
If they can build Jaguar up from a Mobil chip to a Desktop chip then yes it is real competition to Intel, so perhaps.
Tho this would sure be their last chance, and they would have to take a chunk of Intel's share to make it profitable, can you see that happening?
I don't know, maybe

Who knows.. Maybe we will all be sitting on our different models of ARM cpus in 15 years bragging about overclocks and completely forget this era of X86-64 CPUs. Its a joke, but then again??
I have seen a few people lay hopes on ARM.
I could be wrong but i don't think that will happen.
Firstly, ARM are purely a chip designer, they get their revenue from licencing IP to companies who make chips out of that IP.
For example Nvidia Mobile chip (Tegra) are ARM IP, Nvidia simply buy the lenience, stick their own name on it and call it their own.
So a 3'rd party would have to come in, like Samsung or Sony or who ever... and try and make something of the IP.
There in lays the problem, ARM are not designed to run x86 or x64 naively, its why they dominate in Android Phones and Tablets, its why you don't find them in Windows platforms (yet, but may be coming through AMD, see here)
Whats more Intel owns x86 IP, and AMD owns x64 IP.
Lets say Samsung licenced ARM IP to develop into Desktop chips, they would have to go, cap in hand to those who they would be competing with, 'Intel and AMD' and ask them for X86 and x64 IP licenses, what do you think they will say?
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) to begin with, i want raw performance.
i have just replaced my dying P-II x6 1090T with an i7 930. i think i will keep my eye on my electric 