This was exactly what i was thinking. Instead of outsourcing products from AMD, allow other (non-competitive) companies outsource to AMD. They have the fab facilities that they invested so much in, so i would think they would be very reluctant to get rid of them. Maybe they could attract SUN over from Texas Instruments. Madness.
Of course, i can also see where they would want to outsource their lower end models. This seems like a smart move. Let Intel be the Ford and Chevy of the CPU market. AMD should go the smaller road and be the Lambo and Porche CPU company. Innovative, powerful. Restore some consumer faith back into the company. This could be their 'Picasso' years. Eventually (maybe, hopefully), people will see that AMD logo on a computer and go "WOW!". In a few years, if things brighten up, they can always return back to their full-line approach.