For lower resolutions the 320MB card is just fine with little or no difference compared to its larger brother.
AMD hasn't screwed ATI, the problem lies a while back. I can't remember exactly what happened but they based an assumption on where the market was moving in the future (for coding) and everything went in the opposite direction causing them to scrape 6 months of work. Which caused all the delays that we are seeing and because of which worse hardware then what could have been completed.
I wouldn't say AMD is quite aiming ATI at Intel because Intel doesn't have any discreet cards at the moment, only have onboard and buying a another component is adding cost to a build when intergraded graphics is already there with no additional cost. That being said it's going to become very interesting in Q4 when Intel releases their first "ultra" high end cards. With lower end cards to follow in 2008. I personally won't be buying their first cards no matter how well they perform as every company has bugs to work out when they enter a field for the first time.
Edited by james_8970, 28 June 2007 - 12:21 PM.