They should have let ATI keep their brand, ATI did nothing to be ashamed of.
They immediately gave up the ATI brand. Now, ATI finally have top of the line graphics processor but AMD doesn't have top of the line CPU. Gamers and press aren't stupid, they would eventually compare i7 CPU by taking out AMD CPU.
It is AMD brand manager suits who created this awkward situation. It still shows AMD is a mature company who dares to take such decisions like putting Intel in it. Imagine Oracle suggesting IBM servers for running their software.