Hope this isn't going to sink the Seattle chips.
I'm quite looking forward to getting my mitts on some of those. Especially if we can get them in high-density servers similar to HP's Moonshot boxes or SuperMicro's Micro-blade. A couple cores, dual 10 Gig networking built in and a healthy number of SATA ports, I can see quite a few applications for them.
The problem with SeaMicro was that they were trying to cram a bunch of chips into a single box and operate under a single OS, and there are very few reasons you'd need that. Even HPC applications don't need that many cores in a single box, and in many cases are more efficient in a bunch of discreet boxes anyway.