The Athlon will only compete with P4's that run on the slower bus (133, they say 533).
In answer to the question, the mhz myth does apply to AMD.
Look at these benchmarks comparing the Opteron to the P4.
http://anandtech.com/cpu/showdoc.html?i=1818&p=6
In UT, the 1.8Ghz Opteron can hold its own against a 3Ghz P4. That's a significant gap in Mhz but the actual processor speeds are similar.
The Opteron isn't exactly common right now but the benchmarks speed for themselves. Mhz is not everything

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