History Lesson
In 1984, when Apple made the first Macintosh, Apple chose the 32-bit Motorola 68000 processor, because it was (at the time) far superior to the 16-bit Intel 8086 and 80286. The Intel chips at the time were simply not powerful enough to drive a graphical OS. The 68K was proven, powerful, and easy to program, so it was a no-brainer for the new Mac.
With the introduction of the 386 and 486, Intel's processors became much more powerful, to the point where they could do everything that the equivalent Motorola 68K series chips could do. Apple didn't want to fall behind, so it entered a partnership with IBM and Motorola to develop a new chip, the PowerPC.
When it came out, in 1994, the PowerPC was clearly superior to the then-new Intel Pentium. It continued to be much faster than the Pentium and PPro for several years. (At one time, Apple was selling 300MHz Macs while the fastest PCs were at 200MHz. Not that anyone in the PC world cared, and really, I don't blame them.)
Of course, the Pentium II, PIII, and P4, and the Athlon/A64/etc. have continued to evolve, and so has the PowerPC.
Today, there are tens of thousands of Mac OS applications that run only on the PowerPC. If Apple switched to an AMD/Intel CPU, none of them would run. Every Mac software company would have to re-compile (maybe even rewrite) their applciations to be compatible with that machine. Many companies probably wouldn't bother.
Also, Apple's customers have heavy investments in PowerPC-compatible software. If Apple were to switch to an Intel/AMD CPU, none of my software would run on that machine, and I'd be quite upset. I'd have to buy new versions of everything, and I don't have that kind of money.
So, unless Apple wants to risk alienating its customers, Apple is stuck with the PowerPC. Which, really, is not such a bad thing, as the G5 is quite a good chip, with plenty of room for growth.
[My signature is a joke, but the quote is serious. Click the link.]