Help clarify some hardware doubts

Hi, I've gained much knowledge after visiting this thread however, some doubts still remain in my mind which no Google search could remove. I hope these questions will prove useful to me as well as to anyone who visits this thread. Before I progress, I want to say that the final decision of buying X hardware instead of Y is that of the buyer. Discussion is necessary to ensure that the buyer chooses wisely.

Question 1: Considering the availability of more powerful (not necessarily better performing) processors from AMD at the same price as a mid-of-the-line Intel processors, and the fact that not many applications/platforms exist which uses AMD's architecture to it's full potential. is it a good decision to still invest in AMD hoping that in some time a software platform may come and exploit the chip? This especially applies to gaming performance.

Question 2: After about 120 fps, does it really matter?

Question 3: Can you answer any above questions?
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