Hm, that's very interesting! I'd be even more interested to see of a lower priced (slower) chip gets released (a Core 3 Duo if you will)... I don't NEED 4 2+ghz high end cores. I do WANT a machine with upgradable GPU, extra HDD and optical bays, etc. I'd be pretty pleased with two Core Duo 1.6ghz type chips (so 4 1.6ghz cores) and a 7300GT... if these Xeon chips really ended up being resellable for even $700 each, that would get an edu priced model down to just $1k, add another $400 back in for some lesser CPUs and you'd have a really, really nice computer.
Why can't Apple do that? I'd pay $1500 for a dual Core Duo 1.66ghz Mac Pro in an instant. I mean like RIGHT NOW, I would leave work, drive the 70 miles to the Apple store and leave with one.
Of course, I'll probably buy a Mac Pro anyways (as soon as I can talk my wife into not killing me for it) and I'll find something completely unnessicary to do with all that power. Like encode all of my DVDs to H.264 files and set up some sort of media streaming center.