Hmm dunno, but even the 4x ps2 blades spec seem rather impressive, perhaps more so then the PS3's... Seeing how devs really harnessed that PS2, all their first party studios where kinda fond of the PS2, even though it was so hard to program for, it also enabled them to do things the other platforms of the time couldn't.
The Cell/PS3 wasn't that easy to learn either.
It would have guaranteed backwards compatibility.
The inclusion of a whole PS2 in the early 60gb PS3's was rather expensive one might think.
Four PS2's, each capable of a 640x480 output would've made for a pretty capable 720p console. Gran Turismo 4 was able to output in 1080i, so 1080p for media output would've presumably been doable.
Since most games where close to 720p that generation, it wouldn't be too far off with the PS2cube idea
Sony would not have to use the GScube either, the idea of the GScube, but a more simple structure, like a heavily improved PS2, more raw power. The PS2 was very flexible, a much more powerfull PS2 wouldn't have that much problems keeping up with the 360/ps3 games we got.
Interesting thought at the least, somewhere it must have been on the table at Sony, but they didn't go for it, i mean the GScube and all...
This potentional PS2cube wouldn't need as much memory as the PS3's 2x 256mb either i think. The PS2 had 32mb against the xbox's 64 but they werent a whole gen apart either, they were clearly playing in the same generation of power.
Not that the PS3 was bad anyway, uncharted for the time was something else