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I see where you guys are coming from...especially with the OC article you linked. Good read. However I do believe Intel will be running ~4Ghz on .09um process by the end of this year. And the business will reach 10Ghz by about 2007, and begin slowing down in cycles.
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Haven't you just witnessed the collapse? Intel doesn't even believe that anymore. AMD doesn't. IBM doesn't. The speed race has ended, as it's more expensive to get power by shrinking and ramping now than making fundamental changes. Intel's Centrino is much more important than the Prescott, although it can't get near the speeds... AMD probably saw their rising power draw and decided to fix it (or they saw that their processor can't be shrunk and ramped) and thus switched to 64 bit. Better, not faster. Also, if processors get much hotter, we'll need to do a variety of things. We'll need bigger power supplies, and more efficient power regulators. Motherboards will have to be able to take much more heat, and so the traditional PCB might not be useful. Multiple cores will require all that stuff as well, although less cooling per CPU.
Heatpipes are ultimately what will stop water from becoming mainstream, in my opinion at least.