With both the Playstation 3 and the new XBox using PowerPC (or POWER-derived) chips, wouldn't you think staying with PowerPC is a pretty safe bet for now.
Anyway, what I wanted to say is... All the stories are missing the obvious: iPod's are using ARM processors. Maybe Apple wants to use Intel processors for them instead. Intel makes the XScale MIPS processors used in some Palm devices, cell phones, GPSes etc.
update: mariuz points out (thanks!) in the comments that XScale aren't MIPS but ARM (like the CPUs they use in the iPods now.
Well I think most sane people would assume Apple might use Intel chips for some products like an iPod or networking items (for the airport and what not). However you then have those who want to run OS X on their x86 boxs... those people are the ones who drive this rummor... after all why would apple use intel chips over amd chips? Hasn't amd set itself as the x86-64 leader?
xscale are ARM not mips
The biggest complaint about MACs has been their cost in relation to a comparable PC. Although they have some pretty cheap MACs these days (i.e. minis, etc), my guess is they would like to get cheaper and compete more with PCs.
I dont know anyone would want to use Intel CPU's for embedded applications (like music players or gaming systems)
Intel chips are notorious for short lifespans and do not stand up over time. This is the reason why many outfits opt for ARM or PowerPC/Motorola chips. I believe the original XBox uses an Intel chip. 6-7 years from, almost all of those units will not work, I guarantee it.
Looks like not everyone is happy with the migration to x86.
I think the transition over to Intel based hardware is a great move for apple they have huge production levels so much that AMD, IBM, and other chip mfg's cannot produce the same quality of chip's for a comprable cost. Just a quick post to tracktalker#1 I do not know how long you have been around for but the Intel chips are by far the best I have seen come out of any chip mfg EVER. I still have a original pentium 66 MHZ in my basement that has the error in the processor code. STILL WORK's like a chanp I have all kind's of P2's P3's, and pentium pros that ALL STILL WORK! I think the problem you have had, and I have seen is with sub standard main boards, you cannot say Intel has shoddy chip's because you baught a cheap mainboard just trying to save a buck. Intel may not alway's have the fastest stuff on the block, but you can ALMOST alway's say they have the most reliable.