Kaveri competes CPU wise with Celerons and Pentiums at half the price. Those CPUs are also much more power efficient. So while the GPU part is an upgrade. Its a downgrade in about every other metric out there, including cost. And with the price increase for stagnant performance. AMD made sure OEMs will deslect the chips in even higher amount than they did with previous chips.
Apples and oranges "downgrade" argument; AMD is selling quad core budget chips while Intel is selling crippled (feature limited) dual core budget chips.
(All those Intel boxes in the link below suffer dearly from the Intel tax.)
Cost "downgrade"? Retail cost is not the same as bulk cost, and cannot be used as a comparison point as most of Kaveri is going to end up going to large OEM's.
"stagnant performance" - considering most x86 CPU's for the past few years have been quite capable for this market segment, budget quad core and good graphics is the future as software goes more multi-threaded and graphics processing becomes more ubiquitous.
Lets look at the real world and what OEM's offer right now, and what Kaveri will replace after the older supply dries up.
Oh my, look at all those awesome Celerons and Pentiums with Linux, Grandma and Grandpa will sure like that, coming from Win XP.
http://www.newegg.com/Product/ProductList.aspx?Submit=Property&N=100019096%20600014732%20600217078%20600184112%20600014714%208000&IsNodeId=1&bop=And&page=1
Wow, I would love to have that Celeron 887 or 1007U over the A4 or A6 offering (*sarcasm*), which ALSO have more memory (A6 model), a larger HDD and a micro-ATX form factor, which allows some limited upgrading and repair if needed.
Throw benchmarks up all you want, the average user and target market (large OEM integraters) of this chip does not give two shakes about those benchmarks, and I would not hesitate to recommend an AMD box over an Intel box at the low end every day of the week.