Why do people always take extreme possibilities for the next-gen consoles and not feature on hardware that is available now? A much more likely candidate for a future console.
Why would Sony or Mictosoft take a risk with LRB for instance. the graphics part should (if it does this time) come out in h2 2010 or in 2011. Why would they take a risk with a part that has no realistic release date and risk your own hardware on that.
This has been discussed a bit. e.g. Larrabee is an unknown in regards to GPU performance and it is an unknown if the new algorithms it opens up are easy to impliment and offset any performance pitfalls in the "standard" DX rasterizer setups.
Cell is a good example of how a new design concept caused some initial hurdles. Some design tweaking could have offset that (e.g. 2 PPE and 4 or 5 SPEs), but how much of a gamble will companies take?
I think that Sony and Microsoft will take a leaf out of Nintendo's book and go with cheaper hardware (albeit more powerful then current gen) and expand on their touch/gesture/movement controllers. Why wait for certain 22nm parts when 32/28nm should be cheaper, less risky and I think that Sony doesn't want to repeat the PS3 launch.
MS was able to fit fairly competitive hardware in 2005 at a $300/$400 price point.
I would be shocked if all companies go "Wii-style" on us. If MS or Sony keep similar power, heat, and silicon budgets and the other is less progressive they are essentially conceeding the high end to the competitor.
Or put different, we could have 1 360/PS3 console and 2 Wiis in the market. So instead of 50% of users being split between the 360/PS3 and 50% with the Wii, you would see a flip flop--and everyone would say graphics shouldn't be ignored!
Everyone will have casual interfaces next gen, but that doesn't mean that the market who cares about cutting edge games disappeares.