Since when has Intel stopped updating the Xeons?
The whole Xeon line up ? They didn't. For what is now the Xeon E5 ( was 3500-3600 and 5000 series )? They pragmatically did in 2011. That was a year of no significant upgrades ( at least for workstations). For Xeon E7 Intel completely skipped Sandy Bridge micro-architecture to get to the process shrink.
Partially that was due to some hiccups on transitioning to PCI-e v3.0 (which evolved slower than projected launch roadmaps) and some bugs in chipset implementations. However, also partially because the market was weak (both in x86 core competition for Intel and on the demand side. )
The Xeon E5 and E7 upgrade cadence has been slowed. The Xeon E5 announced in March '12 (and shipped in systems in May '12 ). The Xeon E5 v2 isn't going to show unitil Aug '13 (and if same slide in systems Sept-Oct ). Xeon E5's are shipping v2 ("Ivy Bridge") after the mainstream line up is already on v3 ( "Haswell" )
I actually think that's an apt comparison. I wouldn't think of workstation processing power in terms of speed as much as I would heavy lifting.
It can be speed but it is speed under a bandwidth load. Attach a 6,000 lbs trailer to a F-150 and a Lamborghini and see who wins the drag race. The PCI-e bay and the F-150's cargo bay are a bitter analogical fit than the non cargo capacity of a Lamborghini. Likewise being hitched to SAN/NAS , A/V capture, external I/O on Mac Pro side and a trailer / hauling / pull out of a ditch capabilities of a F-150.
Now there are posers who buy both F-150 and Lamborngini that have no real need for the capabilities and far more so for crotch grabbing bragging rights. Either one of those is a match to the posers who buy Mac Pro for same reason.
Machines like the iMac and HP Z1 will eat into workstation sales simply because they'll be powerful enough for the work that certain users never really needed a full blown workstation for in the first place.
That isn't really true. While "640K ought to be enough for anybody" is famously used to promote the notion that no limits should be put on specs users needs, the reality is that increases in performance can outpace the increases in user workloads. The constant onslaught of performance improvements have pushed past many folks. Including some of those who formerly needed a higher end workstation to get their work done.
And iMac and HP Z1 are capable of doing better than a TFLOP in computations with the proper software. That outclasses some supercomputers from the turn of the century and many workstations from several years ago. To claim that many folks can't do significant work on machines with that level of performance is bogus. They did a decade ago and it is more than possible now.
So they'll definitely cross over in the low end. But I don't see it encroaching on the high end user market significantly.
Looking in the wrong place to see the encroachment. It isn't the systems, it is the workloads. Relatively slow growth (or non growth) workloads will be encroached on by these systems.
And personally, I still like the freedom of choosing my monitors, being able to easily service parts, and have everything in one box rather than multiple pieces strewn around my desk.
'Form over function' is in the same boat as '640 otta be enough for everybody'.