Well, guess we should be looking forward to £400 GTX 60 and £999 GTX 80 cards and £1200 for 80Ti cards then in few years time. Better start saving up for that upgrade
There si much more to setting prices than competition, in fact I doubt Nvidia's current pricing is at all effected by AMD otherwise they could be charging more for the 980Ti seeing as it is faster than the FuryX with 50% more VRAM yet costs less.
Nvidia will price cards at a level that people are willing to pay, that is what will maximize their profit. Selling an X80 card at 1G certainly wont achieve that. At the other end of the scale Intel is by far the biggest threat to NVidia and will ensure the bottom end is always competitive, and that in itself will put a limit on the middle end at least.
I doubt prices will really change much at all if we were to loose AMD. I don't think it would be good at all but it is far form the nightmare some AMD crew would have you believe. Nvidia would still need to sell products and that fact itself would dictate a market controlled pricing structure and continued innovation form Nvidia. And as long as Nvidia is making GPUs and compute devices form the same architecture the Intel Phi is going to put huge pressure on Nvidia to keep progressing performance.
It is the desktop CPU market I would be much more worried abut. Nvidia aren't competing with Intel in the CPU market, no one is, they have a free for all. I can see Nvidia and Intel getting very aggressive with HPC compute devices, that will be good for desktop GPUs. But CPUs, there is nothing.
Now, just to be certain, I don't believe it would be good to loose AMD. Nvidia would certainly slow down their innovation until Intel catches up a little. Prices may well rise at the high end, but we already see the ridiculous TX. The market, API, cdeveloper communtiy will end up very closed and be impenetrable for anyone else to try to fill AMD's shoes. DX13 could be very Nvidia-centric.