Hmm, you asked a question, and I simply answered it.
You do have 'show quoted text' enabled, and can see your own question ?
The CAP7/CAP9 is relevant for three reasons : Clearly, it IS Atmel programmable Logic (so is a direct reply to your question)! Also, it will chase medium-volume business that presently uses ARMxx, and an FPGA; design win count will not be 1000's, but the revenue potential is much higher per design win.
Thirdly, I've not seen the M3 available at all in such a medium-volume ASIC offering framework. So, it will clearly be quite a while before M3 can even start to crawl in that market space! ;)
I am sure Ulf is seeing customers start designs now, with CAP7/CAP9 on the long term Horizon.
It makes good sense, if you are doing any 32 bit MCU/FPGA design with volume prospects, to at least target an intercept point with the CAP family. If you never get that large, it has cost little, but if you do, it looks very good indeed. So, it will influence more design-pathways.
Once they have this flow working, Atmel could add an AVR32 variant relatively easily. All it would need is one 'seed' customer.
I see you had much to say about the statistically insignificant FpSLIC, but had no replies for my comments that NXP has Licensed Cortex A8, but not bothered with the M3 (A decision I can well understand), nor any comment on the non-usability of the new ST M3 to my app.
Having the M3 core was sadly of no use (either plus or minus), when they chose to make USB and CAN mutually exclusive. That killed it stone dead, off the list entirely. Perhaps they will fix that in a new revision ?
Those 4P's again : Peripherals, Power, Package & Price
-jg