I worked as a green badge (contract) employee at Intel off and on for several years before becoming a regular blue badge employee. As a contractor I was treated and paid well. It took about 4 years as an employee before the vested benefits were enough to make my total compensation comparable to what I charged as a contractor. Also, as a contractor I understood exactly what my responsibilities were, I wasn't involved in many meetings or company politics, andI worked a 40-hour work week. As an employee, none of that is true. If I had to do it all over again, I would have continued contracting. Becoming an Intel employee was one of the worst decisions of my life.
If the contract work sounds interesting, then go for it. You won't be signing a fixed duration contract. You can leave at any time if you're unhappy, and of course Intel can let you go at any time. I wouldn't hesitate to come back to Intel as a contractor. In fact, I will probably leave in a couple of years and return to contracting. I'll have to wait a year after quitting before I can return as a contractor, but I'll just do work for others until the time is up.