Intel's chips are still more expensive than ARM's chips, at the same level. Intel isn't interested in making pennies in profit for each chip. For all we know the Atom division isn't even profitable these days, since the disappearance of netbooks and the very slow adoption in mobile, but being subsidized by the other chip divisions.

It would also be a very bad move for Raspberry to get involved with a company like Intel, and get themselves stuck with a historically abusive partner, that often tells you it's their way or the highway, like they did when they forced OEM's to buy their CPUs integrated with their GPUs, even if the OEMs already wanted to buy discrete GPUs. They're in a much better position picking a chip maker out of the dozen or so ARM chip makers.

I agree they should upgrade their chips, though, and maybe even have higher-end ones. Even now there are $200 ARM boards, which is what one that is 10-15x more powerful than Raspberry Pi would cost right now. However, I'd rather they don't split the architecture support by software vendors in 3: ARMv6(currently), ARMv7, and ARM8. I think they'd be better off just waiting it out until they are ready for ARMv8.