Of course, if your observation is correct and Intel's 32-bit core designs are behind ARM's in terms of pwerformance, that does not bode well for the race in 64-bit designs. Still, getting there first and having the raw performance advantage in general with faster CPUs gives Intel a bit of breathing room.
Intel has definitely been very aggressive with its Intel Inside campaign. Its still debatable as to whether the investment they have made has been worth it, but I have seen the company expand its acquisitions and in-house research quite a bit over the years so there's little to suggest that an aggressive marketing push is distracting the company or diluting its resources thus far.
ARM already has finished 2 64-bit designs, Cortex-A53 and A57, which will appear in products mid 2014. X-Gene will be available before that - initial versions use 8/16 4-way OoO cores at 2.4GHz, so clearly aiming for top performance (faster than A57). It will be interesting to see how they compare to x86 servers - they claim "4x the density and 50% less power while delivering comparable-to-better overall performance."
Server market is still open for grab. The game here is not only the power effeciency but the space, speed and availablity is also important. ARM must know all these and so does Intel. After loosing out in personal computing space it will be interesting to see how things work out in clouds.