Hindsight is 20/20, but Intel selling off their ARM division (XScale) almost exactly a year before the first iPhone was announced looks like a pretty bad call in retrospect.
The only reason Intel owned it in the first place was because they lost a lawsuit with DEC. Intel has repeatedly shown that it is just not that into ARM.
It's a fine call... if they could scale Atom down that low + eat the margin hit to gut ARM dev boards.