I think the maths co-processor comparison is a very valid one:
iirc the new CPU core does away with a lot of the floating point units and will pass heavy flops work to the embedded GPU to deal with instead. I believe Larrabee was meant to be some kind of fusion of x86 instructions and stream processing, but (as we know) that got shelved - AMD are taking the stream knowledge from their graphics cores and adding it to an x86 CPU (kind of coming at it from the reverse direction to Intel).
Everyone seems to forget, however, that Intel have already fused a CPU, GPU and memory controller on one piece of silicon with the new Atoms. So I'm not sure how that differs from what AMD are trying to do... *shrug*