If Intel ran AMD out of business, they would jump for joy. They would shut down unneeded factories, cut costs, and sell millions of more chips at a much higher price, with less quality as they would be a monopoly. People wouldn't be able to upgrade if Intel didn't want them to, as building new technology is pricey for a company.
Of course development wouldn't stop! Intel would be the only company on the block, and everything would have to be bought through them. I hope you're honestly not suggesting that competition makes a company want or able to do more. If so, you're wrong. Competition forces a company to put out a better product than its competitor or die. Without competition there is no need to get better as you already own the market.
Apple uses Intel processors now. IBM's PowerPC is no longer the preferred Apple OS processor. Intel would own the market twice as hard.





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