The convergence of PC, Tablet and Smart phone market is discussed bigger than any other topics. If Android supported on x86 and they come out with a desktop OS then Google can directly turn out a war on Microsoft.
'Pentium class system' - sounds like typical Intel marketing obfuscation. Pentium originally shipped at 60MHz - ARM has had a 'Pentium class CPU' for several years - its called the M0 and would easily run off a small solar cell.
Intel has acquired the fabrication technology to save power consumption. Yet, x86 architecture doesn't seem to be the right architecture for mobile/ tablet device for obvious reason. Yet, who knows what Intel would change to make its processor to better counter the technological challenges. The direction of jumping into the market is obviously right. The execution would be the key to the success.
A smartphone/pad is still a commodity. It is only attractive compared to PC or book because of its more compact and "cool" form factor. Improving the inner semiconductor components does not matter as much as it used to.
If Intel fabs can leapfrog 2 - 3 fab nodes ahead of TSMC then they could provide SoCs with far more functions and still lot less leakage / power consumption. But to take full advantage of those chips Intel would also have to provide operating systems & apps ( which Google might not support as they have a bigger stake in Droid to run ARM based system ). Perhaps Intel would grow McAfee into a provider of virus proof Op Sys. Even with all that Wintel type market dominance and margins of yore will be pretty difficult in the Smart Phone biz. The sure way out for Intel now is to just buy out ARM at mega - billions and get a control of their IP - don't think the UK has any Sherman anti - monopoly laws.