Which type of cache is "better" depends on the access patterns of the program. This is true not only because of the exclusive vs inclusive, but also because of the L2 latencies, hit-rates, and the comparative sizes of the primary caches. The Pentium III has drastically lower latencies, and twice the bandwidth at the same clock speeds, so it all really depends on the application, should everything else be the same. If you're comparing a P3 with the T-birds cache design, with the P3s current cache design, the way Intel's doing it makes sense, because going exclusive would be relatively supid, as Sohcan said. The only benefit of going to exclusive is higher on-chip hit-rate, and for the P3 to do so would not be of much use.
Conversley, for the Athlon to have the same L2 caching scheme as the P3, this too wouldn't make much sense. If this were the case, the Athlon would have the same amount of effective-cache as the P3, but a great deal more of the cache (and therefore, diespace) would be wasted. The Athlon would have lower average latencies because of the larger L1 cache. It would also be somewhat wasteful to have increased the bandwidth so dramatically to the L2 cache considering the added hit-rate would be relatively small as compared to the L1 cache.
Both of the design decisions make sense for their respective chips, because there are other featuers that have to come into play (the other layers of the memory hierarchy, and things like die-size, etc). I would not want to see either chip with the others' L2 cache implementation, as it would only degrade performance in both cases, for the majority of cases.
As Sohcan said, going exclusive requires more bandwidth, so it would be nice for the T-bird (and now Palomino) to have a wider L2 cache interface, but that requires more engineering effort, and considering the already massive hit-rate of the L1 cache, there would be relatively little benefit as compared to the time required to dig around in the core again (though perhaps they could have between the T-bird and Palomino....).