AMD/ATI combination is not dying... Instead you must understand that the original design of the R600 is the effort of ATI, but it is not assisted with the AMD new 65nm manufacturing process. Even the NVIDIA also have the design problems..
It is not easy to become a top microprocessor engineer, and a successful design of the microprocessor and GPU is solely a team effort, not a personal efforts. Even Intel have their wrong design decision by adopting the RDRAM solution which is prove RDRAM is a wrong move (not viable) before 2010.
==>> why RD600 need to be redesigned.