No, the smaller form factors make little sense for x86. The baseline we're seeing is UMPC (which is already dubbed pointless and thrown away as trash)
I believe that ARM's Cortex marchitecture for the same wattages as future Atoms, will still lead in performance and compatibility on its hometurf. Plus, nobody will cooperate with Intel to make joint mobile SOCs, or the numbers will be minuscule compared to ARM licensed designs.