IIRC, it was very competitive with the 8800 GTS (>=) without MSAA. Once you enabled MSAA, however, it got a little murky (<=). This wasn't helped by the terrible drivers at launch time (Again, IIRC, there were times when R580+ managed to outperform R600). I believe several key ATI employees came out saying that they wished drivers were in a much better shape for launch (one of which was Sir Eric Demers, a lead chip architect at ATI).
Massively oversized, a very leaky 80nm process, no hardware based MSAA resolve, premature drivers and a shortage of texture throughput was R600's undoing, IMO.
But the $399 price tag, included Black Box bundle and native sound over HDMI interface kept it from becoming a complete disaster.
EDIT: Changed Orange Box to Black Box.





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