Intel's latest Atom chips barely out perform the latest cortex a15 based chips, odd enough they win on power consumption, and not processing power. They are still miles behind chips like the A6 in terms of power usage though, and not very far ahead in performance. That leaves you with chips that are slightly faster than the more reasonable ARM chips, and a lot worse in power usage. Now compared to a proper x86 chip, even against a low end one like an i3 the atom is entirely spanked in computational power, and miles ahead in power usage, so it's harder to compare to other x86 chips than it is to compare the Atom to ARM.
The only big advantage that Atom has over ARM is that it can run proper x86 software an ARM cannot without it being ported to ARM (like ubuntu). That also happens to be it's biggest problem though. The popular ARM based OS's (iOS, Android, and Chrome) are written with ARM's performance in mind. Windows, Desktop Ubuntu, and OSX are NOT performance optimized for phone grade CPU's. The fastest Atom tablets are at most barely usable with windows 8, and curl up into the fetal position at the mere thought of running any software that one would actually need a desktop OS to run.
You are absolutely 100% correct that Atom is more than capable of running anything that the majority of users need, but even 4-5 year old phones can check Facebook and use google.
Once again though it's simply academic, as you reiterated what I said, Atom CPU tablets are more than capable of running the vast majority of what a windows tablet user would want. The fact that the Atom chip obviously underperforms versus a x86 cpu is not particularly relevant.
As for an Atom tablet being "barely usable with windows 8" that's blatantly FALSE, I can directly attest to that as I have owned several Windows 8 Atom tablets, specifically the Samsung 500t, Asus vivotab smart, Acer w510, and the Lenovo thinkpad tablet 2. I have run FULL Office 365 for example quite smoothly on an atom tablet, I've also run Photoshop, but only with light use and I'm sure medium or heavy use of Photoshop would not work well, but once again now we are talking about something the vast majority of tablet users would never use. It does bring up some great strengths to the atom tablets in comparison to other tablet OS, 1st the fact that you can run the full software on them in this example Office and Photoshop. 2nd that everyday consumer programs run better with windows memory management in my experience, for example opening a ton of tabs in a browser on an ipad is a less than pleasant experience but I can easily open a dozen or more tabs on IE10 on my windows atom tablet, AND have a couple of programs running in the background and my tablet is smooth as butter, no stuttering, no checkerboarding of webpages, no browser memory crashes, etc.
I think you are dead wrong in comparing an atom tablet to a 5 year old smartphone. I'd be much more inclined to compare an android or iOS tablet to a 5 year old smartphone, and that's not even considering the toy-like OS they have or the toy-like "apps" they have. No an Atom powered windows tablet is nowhere near being toy-like. You seem like a logical person, you should try out Windows 8 on an atom tablet, sounds like you would be pleasantly surprised.
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