Performance wise, AM2 is a big failure. It provides little or no performance benefits over Socket 939, but costs more. Until AMD releases a completely new architecture, Core 2 Duo will own it hands down.
Oh don't get me wrong. This inital launch is only for AMD to transition into the realm of DDR2 and start from there. Once K9 and K10 come around, Intel will be fighting. Oh and trust me, it's going to be fierce.