AMD Hammers Intel with what?

This ZDNet story is typical of the excitement surrounding AMD's first showing of Hammer, about 2 blocks from the Intel Developer Forum (IDF) in San Francisco. Everyone seems to have bought the AMD pitch hook, line, and sinker. Smooth migration from 32-bit to 64-bit, etc. etc. But, I'd like to know how big an advantage the transition from 32-bit to 64-bit applications is going to be for AMD? Is a one processor fits all approach what's been holding back the migratory path? Or, is it just that the return on investment in making the migration doesn't favor any but a few, specialized software applications? Also, doesn't AMD risk reducing the earning power of its 64-bit platform by hammering home the 32-bit performance message and throwing it in the mix? A highly specialized, and expensive 64-bit solution might have helped AMD to get out of the bargain basement which would be a good thing for a company that wants to go toe-to-toe with Intel, a premium brand and marketer, and rich too. Cheap, cheap, cheap doesn't get you invited to the Gates Mansion for a game of Bridge.