Rainbow Falls is falling off a cliff
Oracle will stay in the hardware business, just not as a strategic part of the business. It's all about high cost appliances which drive software dollars and lock in customers. The only reason Oracle is keeping the T chips around is because they use tons of licenses. The real problems is all the talent has left and you cannot just high top chip talent off the street when the good people have gone to CISCO, HP and even Microsoft.
The M-Class systems will be gone from Oracle's portfolio even before the next speed bump comes out. The SPARC64 VIII has been canceled so SPARC64 will never see 45nm.
Oracle is also looking to OEM Dell for Exadata V3.