I tend to believe this will eventually be bad for consumers.
"Happy slaves are the worst enemies of freedom." - Marie Von Ebner
"It was always the women, and above all the young ones, who were the most bigoted adherents of the Party, the swallowers of slogans, the amateur spies..." - Orwell
My guess is: AMD siphons off ATI talent to work on AMD pet projects that involve incorporating video stuff into mobos/chipsets/cpus/whatever, and the company languishes. Nvidia laughs to the bank.