|"It would be naive to believe that a company the size of AMD could digest a company the size of ATI without some indigestion."|
True. But ATI seems to have been at a particularly weak point when AMD got them. Now, if the Inq's stories about R700 are true, then that might be the reason. And, I have to say, the recent stories about the graphics capabilities of Puma seem to bear it out.
Bottom line, if the Puma and R700 work out like The Inq's press is painting it, then AMD could be in a very good position. If not, well, then they will be the new Commodore.