How many laptop users really need a 12 core chip?
You didn't see the impossibility of this thinking so I'll explain. How can AMD compete to help drive down prices if everyone only wants to buy Nvidia? You have to actually buy AMD in order for Nvidia to drop prices. That's why its irrational.
Are you saying you'll buy an inferior product from a company so that company can make more money and maybe one day sell the products for less? I bet AMD has a bridge they can sell you too.
I dont think you understand how prices actually work, but you have one word correct and that is compete. For prices to lower, then AMD and Nvidia need to compete instead of one being a little brother to the other. The same way AMD 'competed' against intel with the Ryzen lineup. Before Ryzen, AMD was certainly second fiddle to Intel, anyone who says otherwise has a strange bias to one corporation. Look how quickly AMD made high core count CPUs standard for computers. Those Intel 10 HEDT units were priced ridiculously because there was not competition from AMD.
For GPU prices to lower, then AMD will need to compete better with Nvidia. The big gap right now is DLSS, Frame Gen, and RTX performance. In those areas AMD is significantly behind in those areas. But that's not to say AMD makes bad GPU's, they are really good, but they cant 'compete' with Nvidia in several areas.
Lastly, GPU prices are not going to suddenly drop because AMD releases a great GPU. In fact, expect GPU prices to increase, and by a lot over the next several years. There is too much use for GPU's in AI and Nvidia and AMD will certainly cater to those markets. What will happen is the demand for GPUs will increase and with no more foundry spaces, the supply will remain the same.
AMD will be fine. They make great products, both GPU's and CPUs. While they are slightly behind Nvidia right now, it's not by a lot and AMD can make up a lot of ground in upscaling resolution with AI cores in future GPUs.