As has been previously said, the CPU perf. and CPU perf. per watt is very impressive with this Baytrail SoC. Obviously the GPU perf. is not stellar, but it is what it is. The main issue is some instability in Android, which means that Baytrail Android tablets will not be available for purchase until early 2014.
Is ARM in trouble now that Intel is seriously addressing ultra low power computing? If ARM was competing by itself, then the answer would be yes. Fortunately for ARM, there is Apple, Samsung, Qualcomm, NVIDIA, etc. to carry the torch with fully custom ARM processors in the future.
Now, with respect to Windows on ARM, fundamentally this is a great idea. After all, it hardly makes sense to exclude the ARM ecosystem and all the great SoC's coming up from the likes of Qualcomm and NVIDIA and others. And Android accomodates both ARM and x86 processors, so it hardly makes sense for Microsoft to exclusively support x86 processors with their Windows operating system (even more so since Windows phone uses primarily ARM processors). So what Microsoft needed to do was to either clearly differentiate between ARM and x86 Windows OS's (by using one Windows OS for ARM powered phones/tablets, and another for x86 processors), or to unify features between ARM and x86 Windows OS's (by having the fully featured version of MS Office on Windows on ARM). Windows RT did neither of these things, and therefore created confusion in the marketplace. And FWIW, I believe that the vast majority of consumers don't care about legacy x86 support in a tablet (and in fact, most consumers will not bother to hook up a mouse to a tablet nor hook up an external DVD/CD drive either). If Microsoft wants to encourage hardware and software innovation on the Windows platform, they will need to support both ARM and x86 processors to the fullest extent possible.