More cache is what Intel has been doing, and making the pipeline incredibly long forces them to do this (chips with long pipes and small caches SUCK - modern Celerons are complete trash this time). The second core (especially in hypertransport-linked AMD64 chips) will make a much larger difference.
They said that they are going to be producing dual-core solutions with the same TDP levels. AMD can probably pull this off, they've done some amazing work with the new mobile Athlon 64 cores. Intel could do very well with a dual-core Dothan, but Prescott IS pretty hot. However, nobody is saying that putting two cores is going to immediately result in twice the watts dissipated.
Edit: To elaborate, I am saying that they (both companies) have skilled engineers and aren't as stupid as some people may make them out to be. So I find it unlikely that they are going to have a 200 watt chip, not just yet.
I haven't heard anything about SMP being handled on-chip. I mean, how do you take a single thread and break it into two? As gameboy said, it is going to be great for 2k/XP pro systems that run either multithreaded programs or multiple programs at once. It may not give a lone consumer program a big boost, but it isn't meant to, not in the immediate future (not like said software generally needs that kind of power, excepting multitasking, which DOES benefit from multiple processors). This stuff is going to be geared towards very high-end machines and servers, so that isn't an issue for the short term. But from a technology standpoint, it is still impressive, and hopefully the increasing availability of dual-core chips will result in new software being able to take advantage of SMP.