According to various news sources, Intel is backing a Wi-Fi based alternative to Bluetooth, that's liable to destroy the well-established technology.

We're not so sure. It's an ad hoc network, and Intel is providing "Cliffside" that lets Wi-Fi devices connect to multiple devices. It's also offering a proprietary handshake protocol similar to Bluetooth's. Ozmo Devices is making low-powered Wi-Fi chips to put in headsets and other peripherals.

The benefit is that you don't have to have separate radios for your Bluetooth and your Wi-Fi, and it will go faster.

Great. Laptops all seem to have Bluetooth in them now, and phones all do, of course. It's cheap or free because of the volumes. Bluetooth already has good service discovery, and frequency hopping to keep away from other radios - so it will work better than another Wi-Fi signal.

And if you need higher speed, Bluetooth has the option to use Wi-Fi transport for higher speed.

Despite this, a lot of the coverage takes it all very seriously, because it's backed by Intel. Yes - that would be the same Intel that brought you WiMax and ultra-wideband.