And you know what? It would STILL BE SLOWER than the cheapest off the shelf PC processor from AMD or Intel. The CPUs in both the PS3 and 360 are incredibly slow in any real measure of performance.
They were slower than the contemporary CPUs being shipped by Intel and AMD at the time and they've only gotten further behind them.
So you're telling me that the reason PS3/360 can't do 1080p with 4xAA is because of their CPU's? That's obviously not the case as their CPU's are not really bottlenecking. Also you're saying a launch C2D from 2006 can perform image analysis, MLAA, folding@home, lighting and shadow calculations faster then Cell with all its cores? That's laughable. It may run office and windows faster, maybe your downloaded games and demos would install faster on the PS3, and you could compile your programs, build your projects faster on it, but that's irrelevant on a console. There is no primary console application that will need the strenghts of the x86, and the secondary applications like web browsing, netflix, facebook etc will run just fine, since they run fine on even netbooks.
Face it, ever since CPU's got fast enough for real world tasks, they haven't really been relevant, it's all about stream processing/GPGPU's now. Anyone upgrading their computer would get FAR more benefit from getting an SSD and/or a better GPU compared to replacing their CPU. That's why x86 is not needed for these consoles since they don't do cpu intensive tasks that aren't related to graphics, which are done better by stream processors/gpus, not to mention BC is really important this gen due to many downloadable games that users have in their hard drives and tied to their account.
And while you're quick to call out Cell as a failure like you called Blu-ray a failure in 2005, the stream processing concept will still be carried on by Cell and GPGPU's. More supercomputers are looking to use GPU's, and I still mention a single cell processor can still do the same "heavy lifting" tasks as a six core opteron which is more expensive and uses more power when you comparing the 1st and 2nd place supercomputers. Cell is no magic bullet, but it's paving the way more versatile GPGPU's which will take over.
It makes much more sense to put a lightweight core + gpgpu cores/stream processors for a games console. Besides the GPU doing graphics, a part of the GPU core will also be in the cpu to do the heavy lifting/math, similar to getting another NV graphics card for physx.
I actually cannot think of many things that the CPU is bottlenecking any more. On the Oracle servers that I work on, the CPU's are only 10% loaded, they spend the rest of their time waiting for I/O.