@it is difficult to be sure how disappointed we should all be...
I find it very interesting that (the last time I heard the figures) NVidia's share price went up by 13% on the news of the canning of Larrabee. (I think AMD was also up about 8%). It makes me wonder how much Larrabee was just another experimental Intel chip that was being used as a PR vaporware marketing tool for Intel to use against their competitors. (Intel have other experimental chips, like that 80 core chip a few years ago, but Larrabee was pitched as Intel's answer to NVidia and ATI/AMD products. Larrabee was making some customers hold back waiting, as they were thinking about using Larrabee instead of Intel's competitors. That was hurting Intel's competitors.
Also Intel's timing is very interesting as they just happened to mention their new experimental 48 core Intel chip about 2 days before they canned Larrabee. Problem is that 48 core vaporware chip is at least a few years from market, and so by then, NVidia and AMD will most likely have at least 2 more generations of their GPUs released by that time.
Intel is falling way behind in both graphics and high power computing markets, so the canning of Larrabee is big news.
Intel's whole marketing plan is to keep pitching x86 compatibility as centrally important, and so they are trapped into this marketing course. They cannot finally admit x86 chips are becoming very bloated with decades of legacy design ideas all crammed in the same chip. That bloat takes up a lot of extra space preventing many cores being placed in the same chip, yet it gets worse still as its also using up a lot of extra power just to power up so much extra legacy circuitry. So Intel's dependency on pushing x86 is providing competitors with a way to fight back against Intel. So its not just Intel's ability to compete in high power computing that is suffering. They are also loosing out to the low power requirements part of the market, like the ever growing mobile computing market. For example, ARM cpu's use far less power than Intel chips, because ARM cpu's have always been clean and efficient cpu designs. But also, even the graphics cards also need very efficient cpu designs, so they can cram many cores into the same chip. So all of Intel's competitors are all pushing very efficient cpu designs. Meanwhile Intel are forced to keep dragging along their not yet dead horse, but certainly they are dragging along an old arthritic, three legged, asthmatic, sad, short sighted horse. Its time Intel retired their cpu, its done its job, now let it rest, while newer horses can race ahead.
We need Intel and Microsoft to move to a new CPU. Sure at the first step of the move, it won't be the most efficient software design in history, but then Microsoft has never been even close to efficient in its software design. Sooner or later Intel and Microsoft will have to move, otherwise their competitors keep looking ever better.
Both Intel and Microsoft have the PC market mostly to themselves, but they are trapped in that market and trapped with x86. Graphics, high power computing, and mobile computing are all growing markets that Intel and Microsoft are struggling to get into. Their old bloated designs are a ball and chain holding them back.
So the canning (and therefore failure) of Larrabee is very big news.
Plus this situation is only going to get worse over time. Thats because back when the race was for one high powered CPU, then Intel mostly won. But now the game is moving towards ever more cores (where each core has to be very efficient to allow it to work within the power requirements to get many cores into the same chip). That efficient CPU design also benefits the single very low powered mobile market. Intel is going to continue to suffer due to their bloated design, until they move away from that design.
So Intel is heading into trouble and this time, the growing CPU markets are not going to wait a few more years for Intel's next vaporware 48 core chip. Intel are in trouble.