I believe actually AMD processes smaller instructions faster, and Intel processes bigger instructions a bit slower. That is why AMD handles games which demand quick processes so well and Intel thrives in encoding big long a/v files.
To put it simply, AMD uses shorter pipelines therefore less data is sent fron point A to point B faster, resulting in more efficent clock cycles, whereas Intel uses long pipelines that can carry a lot more data a lot slower so they need the higher clock speed to compensate.
I remember reading a really good explanation somewhere but I can't remember where.
Intel C2D E6320 / AMD Athlon X2 3800+
Gigabyte 965P DS3 / DFI nF4 Ultra-D
2GB OCZ Gold PC2-6400 / 2GB OCZ Gold PC4000
eVGA 8800GTS 320MB / eVGA 6800GS 256MB
150GB Raptor / 74GB Raptor
2x500GB / 320GB
OCZ GameXStreme 850w / OCZ StealthXStream 600w