On the gift to Nvidia: Nvidia has seen the writing on the wall, and doesn't like what it's saying. The PC market is a tough place to be without any friends. ATI now has all the resources of AMD behind it, and will be producing faster, more compact GPUs and reaching the channel more effectively than ever before. Nvidia's words are bravado, designed to confuse the market while the company tries to find a way to compete now that it's standing alone.
Those are some pretty tough words coming from an industry competitor, especially with the amazing success nVidia has seen with the 7xxx series of the GeForce and ATI's dismal entries into the dual-GPU market. Obviously they are quite happy with their decisions to move in to AMD, so I hope we can expect great things from them.