Notebooks based on the new Dothan Pentium Ms should be available in time for Christmas, which will push down prices for laptops based on the current Pentium M processor. By the fall, it's predicted that all major manufacturers will have Centrino-based notebooks available for under $1100, which should delight cash-strapped students looking for cheap wireless notebooks.
Overall, I don't blame Intel for being bullish. The Pentium M has shown itself to be quite a capable processor, and it will only improve with higher clock speeds and more cache. Bundling the Pentium M into the Centrino brand name makes a lot of sense, too, especially since I can see wireless networking being the next killer app for notebooks.