Microsoft has basically admitted Surface RT is complete garbage. Analysts have said Microsoft has missed it RT sales target by a factor of 4!! They'll be lucky to break even with all the returns I'm hearing about...Wouldnt surprise me for Microsoft to drop Surface ARM all-together once Surface PRO arrives in a few weeks.
Believe you are correct on how Intel's assault on ARM will play out. Tablets are low hanging fruit for Intel and it won't take long for Intel to dominate this space. Smartphones will take longer but even smartphones will be able to leverage the x86 advantage when smartphones are capable of running W8 as a virtual machine and give users complete portability of their desktop.