There's nothing wrong with SPARC. Solaris/SPARC is still powerful, innovative, scalable and secure. AIX/Power would of been a good match, but Big Blue doesn't invest in AIX. Solaris had more new features added in the past 5 years than AIX in the past 15. SPARC is still going strong because Sun realized that it's not the GHz but the 6,8,16 cores/die that are the requirements for a server and because Solaris is still going strong. The Sun Fire T1000 is still unbeatable in cost/performance even if it's 5 years old.
All the Linux vendors (HP, Dell, IBM) keep trying to migrate users from Solaris to Linux claiming that it's dead. Yet, they are wrong. HP-UX, Unixware, AIX, Tru64 are however dead or dying.
Think about Solaris the following way: Oracle Exadata 2. Still nothing on the face of earth like it, because of Solaris and Sun hardware.
SPARC is going to do even better once Oracle ports it's Linux distribution to it. Since Oracle Enterprise Linux and Oracle Solaris are eventually going to be the only operating systems certified for Oracle Software, you're going to see a lot of them, especially on SPARC. Oracle, after the acquisition of Sun is slowly changing into an appliance vendor, and I can't blame them for it.