Apple's Final Cut Pro is kicking Avid hard. FCP costs a fraction of the price, comes bundled with incredible tools, and can run on a PC without dedicated hardware. It puts more tools into the hands of the masses. Corporate television stations and production houses are taking notice. Avid has nothing on the shelf that comes close to what FCP offers. Is FCP a better product. Not necessarily... but it gets the job done.. and cheaper. A FCP system costs approximately $15K... a comparable Avid, $50-80K depending on the options. And for Avid not to come to the dance (NAB in April '08) with new products, more professionals will turn away in droves. Also for Avid to get out of the transmission server business (MediaStream 8000) they no longer have an end-to-end file-based production and distribution solution that they have spent millions of dollars to develop. They have to rethink their entire business model if you ask me...
Second of all, Avid's Media Composer, when you consider the bundled software it comes with, is priced right in line with Final Cut Pro. And factoring that pc's are cheaper than Mac's, Avid's Media Composer costs essentially the same as Apple's Final Cut Pro.
And MC is still considered the superior product, but its edge has shrunk considerably.
Final Cut is hurting Avid badly. Avid is a company in trouble. But your statements about FCP versus Avid's MC are wildly, grossly inaccurate.