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There is no doubt that Nvidia is currently getting its hat handed to it by ATI, which has managed to put out its new GPU well in advance of Nvidia's next GPU. That does not mean, however, that Nvidia is out of the race.
By itself, the GTX260 is a great card, but no longer one which can be called "high-performance". Paired together, however, the GTX260 is extremely fast, challenging Nvidia's much more expensive multi-GPU cards and even the Radeon 5870. The Radeon 5870 does offer attractive features not available on the GTX260 SLI, but the GTX260 is much less expensive. Two GTX260s can be purchased for under $350 dollars. That makes it a performance bargain.
Of course, you'll need to own a motherboard with two PCI Express slots and a good PSU, but if you have those bases covered using the GTX260 in SLI is a very good idea.