The Xeons, wile being Core chips, are not the same as the Core chips used in consumer systems. They are more like Core 1.5 as they are truly designed to be multi-core where the consumer Core chips were more of a hack to be sorta competitive with AMD who at the time had a lead in the multi-core market.
Intels next chip (code-named
Penryn) will be the Core 3 and will launch in around 6-months. At that time all new chips will be of that new architecture, Xeons included. Even better there will be no memory bottlenecks and 8-core systems will actually be worth something.
If anyone thinks this is confusing, it was worse before the Core naming came about and Intel was just using numbers like BMW does.