Because superiority is about price and performance.
AMDs desktop and laptop processors will not compete well on price with Intel as the new Core Duo simply wipes the floor with Athlon 64. A big major problem for AMD is that there heavily subsidized Fab in Dresden, Germany which was suppose manufacture chips at 65nm is late to the game for whatever reason. Perhaps they could get there act together but the first of 2007 but even then they still will not be able to match Intels Core Duo. Looks like AMD is resorting to the old Jerry Sanders philosophy, best bang for the buck which almost drove them to bankruptcy. . Looks like history is about to repeat.