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AMD is coming out with hyper-threading chips sometime in the next year too, so that will bring down the price of that flavor of chips.
I also read somewhere that hyper-threading really only makes a difference if you have more than 4 gig of RAM, don't know if that's true or not.
The processing power needed for MS Office and browsing is actually small compared to games, video production, 3D rendering and art manipulation programs like Photoshop etc.
I have numerous machines from Pentium II's to the latest Hyperthreading P4's and have never noticed an appreciable difference in speed for office apps and browsing.
As someone in the industry, doing benchmarking on CPUs, writing articles on them etc I can tell you that the Intel generates less heat, needs less cooling and has a lower RMA rate (% going faulty in the first year). But you do know that the XP 2800+ is not 2.8 GHz like the Pentium 4, it's a lot lower, so in some respects it's not really a straight comparison?