Far from really bad, just not on par with Nvidia any more. but AMD are definitely aware of this, which is why they've priced them a heck of a lot cheaper.
I'm still rocking a Radeon (currently have a 7970 3GBtbh, and previously a 6850 and a 4870 before that) and it's more than capable of running all the "AAA" games I play and at 1920x1200.
Edit: As far as laptops go, AMD GPU often means AMD CPU too and given the choice I'd always go Intel for laptops, so that might sway your decision.
EDITED: 18 Nov 2013 21:40 by MATT