I'm amazed by all the generally unfounded and emotional responses to this. To me, it's obvious that Apple would not want to switch to Intel processors unless they have good reason. Presuming the latest press reports can be believed, which is quite likely given the sources, then they must have good reason. What reason?
Remember, Apple is not switching to current Intel processors. The first machines would be planned in a year. Apple is looking at the future of Intel's processor lines vs. the PowerPC platform.
Consider this: Apple's notebooks are falling further and further behind. The roadmap looks bad. The G5 seems like a big challenge to get into laptops and even when it makes it, we're likely talking about single-processor, relatively slow models. There's the possibility of the dual-core G4, but it hasn't materialized yet, and I'm sure Apple knows more about the current status of IBM's plans than we do. While many of us have traditionally thought of the PowerPC platform as being faster than Intel's latest and greatest, I'd like people to point to speed tests that actually demonstrate this to be true. The G5 was supposed to be at 3 Ghz long ago and the lack of progress is concerning.
My guess is the situation is the following: Apple has looked at the realistic timeline of future processors from IBM and it's clear to them that they will fall behind Intel over the next several years, particularly if the critical laptop market is taken into account. Remember, we're not talking about just the G5 versus the current Pentium - we're talking about the processor market in 1-2 years and what IBM and Intel are realistically going to be able to deliver. Apple's options are:
a) stick with the current platform and fall behind in speed and again become known as the "slower" computer.
b) switch to the processor line with a better outlook
Everyone is quite concerned about the speed hit a switch would take but is this really a problem? If the rumors are to be believed, Apple has continued to maintain an intel-compatbile version of OS X. Even if you took an emulator approach, any software that used system-level functionality would be autmatically "native" any time it used the built-in tehcnologies. if you give developers a year with the appropriate tools, "fat binaries" should be easy enough to create (that would run on either processors).
Don't make the assumption that Apple is going to make an OS X that runs on generic PC's - this would essentially mean taking a bit hit in the hardware market in exchange for a potentailly bigger piece of the software market and would be a major shift in strategy - I doubt this will happen. Apple is simply going to continue making its own machines with a different brand of processor on the inside. They will work no differently to us and you will not be able to install OS X on a Dell.
On the other hand, a switch to Intel would enable someone to create software to allow users to run Windows, and Windows apps, at high speeds. As I recall, when NeXTSTEP/Openstep was ported to x86, SoftWindows allowed users to run Windows within a window at close to native speeds. It would also reduce a barrier to buying Apple machines as users could always fall back on Windows if needed, so this has the potential to grow Mac marketshare.
The question is whether Apple will continue to develop machines with both platforms, which would certainly be a possibility, though may be complicated. Supporting both chip lines would allow Apple to pick and choose the right processor for each task, but may not be practical depending on the business arrangements.
If the transition has been well-designed, and at this point we can only speculate, the implementation should be fairly inapparent to end-users as long as Apple has a way of running non-recompiled apps at fairly high speeds (which is likely if the OS is essentially already native). PowerPC based machines should still sell as software should work on both platforms. G5 machines won't become obsolete when Intel-based machines come out no more than they would be obsolete if Apple had switched to the "G6" in a year or two - it's just that Apple will have to have OS X working on both processors (which they most likely already do) - remember that when Apple bought Next, the software was Intel based at that time!
This is a great opportunity for Apple. The downsides that everyone are concerned about seem to be largely panic:
a) Apple is switching to a slower processor - If IBM realistically had a better processor option, then Apple would not change. This is being done because IBM has let Apple down. I know everyone wants Apple to have something "different", but if "different" is slower, I'll pass. Better to at least be able to be on equal footing with the PC guys from a processor point of view and have an edge in the OS and design.
b) the new machines will be running emulated software - A year is plenty of time to recompile software
c) Apple will lose its installed base - this strikes me as ridiculous. Most people are not using Macs because they have the G5, they are using them because they are Macs. The alternative is what exactly? Intel machines running Windows? This is a non-issue unless the transition because obvious due to incompatibilities. If Apple has planned adequately, the Intel-based machines will be able to run old programs will a relatively small speed-hit and by then most programs should be recompiled anyway
d) Current and near-future PowerPC based machines will be obsolete - this is also silly - all current software is compatible with the PowerPC line, and since the installed base is going to be much larger than the Intel-Mac base in the near future, future software will be as well.