well a 9800GTX still uses the g92 core so ... its just a bit faster 8800gts 512, its not next gen at all ...
Those cuts definitely put the 3850 in a good spot price-wise. Maybe Nvidia will cut the 9600GT price in response (pipedream i know).
I dunno about the new PLX chip for the 3870x2 though. ATI probably just putting it out because they can, not for added performance (2900 XT 1 GB memory anyone?)