No GDDR5 on Kaveri. Given it was supposedly going to be clocked around 3200-3400mhz (incredibly slow for GDDR5 but obviously incredibly fast for DDR3) it probably just means the gpu will be less potent at stock and use less power than we thought (barring them using a different implementation to get more bandwidth).
That said, if they were planning having more shader processors/higher clocks (or even truly supporting overclocking) in Kaveri without resorting to getting more bw out of their current implementation, those hopes likely went down the tube. There's a good chance Kaveri will only be as good (on the gpu side) as the amount of money you're willing to spend on fast ddr3...which sucks.
I hate to come across as the apologist, but this might be for the best (as they may tighten their designs up). Also, a solution has to be coming at some point once we clear the process hurdle to allow even a larger/more-efficient gpu (I have my hopes set on a 7790-like APU) that will surpass the requirements of this odd middle-ground (too fast for ddr3, too slow for the restrive properties of gddr5 implementations) and that should coincide better with faster/cheaper/higher-density GDDR5/6 or DDR4.