AFAIK, AMD's biggest problem is that they can't pump the clock speed of the Athon much further.
K7 core is old compared to the newer Pentium 4 core* (designed to clock well beyond 2Ghz).
AMD's K7 core has reached scenario that plague Intel’s Pentium III core. It’s AMD’s turn to introduce a new core.
AMD has stated that; IF K8(clawhammer) is to reach 3400+ rating it must travel at least 2.6 Ghz.
*Northwood core Ghz's peak range is at ~2.8~3Ghz.
*Prescott core is design to exceed 3Ghz range.