“For running a single-threaded application (which most are), YES, a 3.2GHz Core 2 Duo will be faster than 8 Xeons. And for right now, your applications like a word processor or a web browser are...you guessed it, single threaded.”
A Core 2 Duo at 3.2 gHz is not faster than a Xeon at 3.2gHz.
“#3: IO, the hard drive is usually the speed bottleneck, not the CPU. Apple has the standard drives or the expensive SCSI option. I have 10k RPM SATA drives. They’re noticably faster than the standard; sometimes just as fast as the SCSI options. But certainly cheaper.”
Outdated info, as is to be expected from a PC user, I suppose... Apple uses SATA in all currently shipping products, with the exception of the MacBook Air. In addition, the Mac Pro and the servers have the option of SAS 3GB drives at *15,000* RPM, which makes your 10K drives look, well, slow.
1) More and more programs are becoming multithreaded. Even the small shareware video apps on Mac will use any processors you have.
2) Running development instances of application servers can really use multiple cores. VMWare gives each instance the option of how many cores it wants to use.
3) It can help even a single-threaded application. Accessing some OS X libraries, for example Core Animation, automatically spawns another thread even if the application doesn't know about it.
4) The cache is the key to the high performance of the Intel Core line. A Core 2 Duo normally comes with 4 MB L2 cache. The Xeon line in the Mac Pro comes with 12 MB L2 cache, 6 MB per pair of cores, 50% more cache. Even on a per-core basis it should be faster.
5) Xeons also tend to run on a faster bus.
6) However, they may be slower for certain latency-intensive benchmarks. This is because of the FB-DIMM memory modules have a much higher bandwidth at the expense of latency.