In Intel's eyes, AMD was never a real competition. And Intel high end CPU pricing has always been dictated anyway
The last time AMD had an edge was when they launched the Athlon 64 CPUs. That didn't last too long.
Although Intel could afford the higher pricing, seeing that people were buying them, regardless, my gut feel is they would increase their profit margin, not having competition. So prices will go one way only.
It would be a pity. Lets hope this new management at AMD rethinks their strategy, that is, if all of this is not a rumour.