Nope, actually if you back track a few generations AMDs flagship single GPU has been closing in to nVidia's flagship single GPU.But back in the beginnig of December there was no prices, so yes they were supposed to compete but AMD came up short so they lowered the prices. Shame ha?
Case in point:
3870 vs 8800 GTX
28% faster
13% faster
10% faster
13% faster
So as you can see throughout the years the overall performance of the flagship single GPUs has been converging, the GTX 580 did end up widening the gap back up to 13% but overall it seems like AMD has done a great job of closing that 28% lead nVidia had.
Further more the fact that the HD 6990 and GTX 590 have a single digit performance difference, despite GF 110 being a faster chip than Cayman, shows that AMD definitely played there cards right this time around and by the next generation of GPUs the single GPU flagships might even end up being closer in terms of performance.
nVidia definitely shouldn't be underestimated though, they were able to pull the GTX 580 out when no one thought it would be possible to improve on Fermi within the same process node, I was very pleased and shocked at the same time when the GF 110 was released and even today I would prefer a GTX 580 over my HD 6950 but budget constraints aren't letting me waste that much money on a graphics card.
So all in all, price and performance determine competition not what someone online thinks are competing products.