"I've seen rumors that the Prescott has been delayed till the 2nd half of next year"
I think you mean 2nd Quarter, not 2nd half...
"Maybe they'll find a way to extend the P4EE to 3.4 or 3.6 Ghz"
Possibly, but these are modified Xeon processors, which means that at best they're selling them at cost... (that's why they're soooo expensive!)
"maybe it's because they're crapping their pants trying to make it x86-64 compatable"
Not possible...at best, the Tejas (due in 2005) will be x86-64...
"I'm wondering what Intel has to say about them making a 64 bit CPU"
In the Wall Street Journal ~2 weeks ago, they stated that it won't happen (for the desktop) until 2005-6
"AMD needs to ramp up speeds quickly to be taken seriously by investing firms"
I think more important is Opteron's acceptance (business is the largest buyer of computers). On that note, Cray just announced a new line of Supercomputers based on the Sandia Labs system (Red Storm)
Cray forecasts Red Storm for masses using Opterons (about 10k+ of them per computer!
"there are probably tens of thousands of businesses out there who would benefit greatly from a 64-bit OS that's capable of running all their 32 bits apps"
Actually, the pressure is equally on M$...Linux already does all of this, and it's gaining marketshare every day...