I think AMD will use the same marketing strategy as it did in the graphics business against Nvidia .Nvidia is still not feeling well after the AMD "treatment".
Of course Intel is not reacting to the AMD price strategy as it has 80% + of the market .
Mainstream AMD CPU-s will be decent priced as it is expected for Intel to kick back.
Intel doesn't compete in price wars. Even if AMD releases a product comparable to Intel at a lower price, they still won't lower their prices. Instead, they phase out older products and introduce a newer, better one at the same price point. Heck, just check out the Newegg and you'll see LGA-775 Core 2, and LGA-1156 and LGA-1366 Core i3/i5/i7 still occupying the same price points they did during release. I reckon Intel's unwillingness to lower profit margins is part of the reason they've delayed Sandy Bridge E so much. They want to see how Bulldozer does before releasing their flagship products.
The major upset, I think, is not Bulldozer on the high end. It'll be Llano in the budget, mainstream and notebook markets. Not saying that Bulldozer will fail. Just that AMD stands to gain a lot of ground in these much bigger markets.