Actually it's not quite that simple. If the OS is 32 bit, then the apps that run in it will be 32 bit as well, although because of the architecture of the PPC 970, the apps themselves can take advantage of some of the 64 bit features such as memory addressing. The PPC 970 can only run in one of two modes - 32 bit or 64 bit - and it cannot do both at the same time, as stated in the IBM tech specs regarding the chip architecture. So long as the OS is 32 bit, then the processor will be running in 32 bit mode, as will any applications therein. The AMD Opteron 32/64 bit chip faces a similar delima. Only when the OS goes fully 64-bit and the applications are ported as well can the processor run in true 64-bit mode as well. When the OS becomes full 64-bit, there will truely have to be two separate versions of OS X to provide backwards support for older 32-bit hardware. That's a big reason why Apple isn't moving that direction in earnest any time soon, but I do agree with you that subsequent versions of the OS will gain more 64-bit like features while Apple ports the full OS.