he originally though the Durango was going to have a raytracing chip, then later on he thought it was going to be a 3 SoC with 3 GPUs and 3 CPU's which included a entire xbox360. I would take what he posts with a pretty big bag of salt.
Here is the thing. Everyone is dismissing this because he is not a dev, which is a big mistake. MS WAS planning a 3 soc machine per the Yukon leak. That design plainly described what was essentially a 3 SKU strategy - Set top-box / tablet with APU, Base 720 with APU plus a second, more powerful SOC, and Premium 720 with hardware BC. That was a strategy that made a lot of sense.
However, nothing about current Durango hardware makes sense if you view from a "traditional" box view. MS has been working on this since probably at least 2009, if not 2008. They have hired massive numbers of engineers and spent untold resources including priority projects at AMD designing the thing, and the leaked specs are what we get? I can't think of any corporate strategy scenarios where that makes sense beyond incompetence or overconfidence.
Until recently, I also favored the Yukon strategy because it was simple, effective, and the most likely outcome was utter domination by MS, at least in North America and UK, with vastly expanded penetration. The leaked specs point to a different design/strategy than Yukon winning the internal MS battle. Therefore, the new strategy had to offer advantages over Yukon.
There is also Xbox surface. It appears that Xbox surface is coming barring changes in strategy. The available information points to Xbox surface being WiiU done right. However that doesn't make sense either given Durango. Some vital pieces are missing. One thing that might unify some of the rumors is if the power7 IBM chips yields were so bad that MS had to switch to the Jaguar cores.
Everything points to Durango espousing a different design philosophy. As soon as I read about DME, display planes and tiling, along with relevant background material, I independently came to the conclusion as the teamxbox guy.
Here are a few scenarios, in order of decreasing likelihood, that make some sense given the available information.
1. Durango's overall architecture creates a novel graphics environment yielding massive increase in output per unit compared to the more "traditional" environments, i.e. uber-efficient design.
2. Some variation of Yukon multi-SKU ecosystem is in play and we don't have the details yet.
2a. Xbox surface and Xbox surface server play into this somehow, either with or without durango as a component, although it seems inefficient to not use durango as the server.
3. MS is implementing an Apple-style upgrade cycle - some evidence for this exists in the MSnerd timelines. Or cloud really plays a big part of the strategy.
4. Sony surprised MS with summer 2012 upgrades and durango is exactly what it seems, an underpowered box.