Will AMD ever recover?

From how they've reacted since the launch of the Core 2, AMD has seemingly resigned itself to fighting in the court room as apposed to with chips. I have to admit through the K6 and Athlons I've loved everything AMD shipped, but since the "empire struck back" (yes bad I know) Intels been amazing, by far the superior CPU across the board, and also fantastic pricing. Unless AMD can pull a rabbit out of a hat with something special, it looks like bargain bin CPUs are where they are heading.

AMD needs to pull a hat out of a rabbit (a lot harder than pulling a rabbit out of a hat). First, AMD is having major issues digesting ATI Technologies (they are still having problems with that); then, the launch of Barcelona (not merely Opteron, but Phenom as well) has turned into a relative non-event (due to processor flaws and inferior performance compared to their Intel competition, namely Kentsfield and Clovertown). The only pressure Intel is under is from Intel itself (AMD certainly isn't mounting any at this point). Intel is pausing because it pretty much has to: not due to any sort of resurgencew from AMD, but to stave off would-be regulators seeing AMD practically implode. Intel wants AMD to recover to avoid being tied up in red tape; therefore, it has to pause in beating them black-and-bloody-blue.