Apple on Intel x86?

I am 2 parts intrigued, 3 parts baffled, and 5 parts just plain gobsmacked by the breaking news that Apple will be switching to Intel processors. The times, they are a chang'in! Questions...

Does this mean that Apple will be releasing Mac OSX for non-Apple manufactured hardware? If so, what will be Microsoft's reaction? Hell, what will be KDE's reaction?

And what in the hell is Apple thinking switching to x86 when this is coming down the pipe??!! Talk about a little late to the x86 bandwagon...