Disclaimer: trying again to find arguments backing Charlie's claim.
Could it be that Sony royalties aside is unhappy about their system overall power consumption and thermal dissipation? After three shrinking the system remains huge and bulky, they still need a healthy dissipation system, etc. I don't imply that the situation is better for other system say the 360 and I know that the Cell is highly effective in the Watts per Flop department still could have Sony came to the conclusion that this kind of thermal/power characteristics is no longer what they want for their next system?
It could also be that they have decided that a two CPU chip system with two memory pools doesn't make sense given the trend to increasing W/mm^2 and in terms of board complexity, the cost of shrinking one not two chips, more frequent revisions and the difficulties of working with outside third parties to cooperate with them in terms of getting the device out on time to market. Perhaps they looked at the Cell and RSX and decided that they couldn't afford to drop the Cell but Nvidia was expendable.
In regard to software implications. I think it could be really "Sonyesque" to want to differenciate them selves from whatever standard Ms/Kronos set in the PC/360 realm? Sony is still building his army of studios and I think that their offering on its own to justify the acquisition of the system a bit like Nintendo (actually better as they can cover way more genres than them). All they need is execution, they now have the compelling line up in almost every genre, Gt/wipe out/ MNR for racing, GoW for H&S, Uncharted for action/adventure, FPS, whatever games using sackboy (imho the most charismatic game character I've seen in a while, huge potential if Sony is willing to get more traction in the casual and kid market), etc.
The side effect of owning so many studios (or having really such strong partnership with some studios) is that Sony has gathered quiet some talented/genius guys that are able to deal with whatever exotic archs Sony offer them to work with. On top of it if Sony were to create a EE v3 (given the time line v2 would be an unfair nickname) or a Cell V2, they would not start from scratch in regard to software.
I suspect they are putting more and more emphasis on their own software performance at the expense of everyone else. My suspicion is that had they had their way Phyre engine, Edge tools etc would not have been created. They probably wanted third parties to be able to produce adequate games but they intended to outspend and outperform the third party competition by a significant margin and therefore produce relatively visually outstanding games to dominate their own platform in the way that Nintendo dominates the Wii. If they go exotic again its only because they feel confident in this approach and want to give it another shot.
Actually say the rumour is true is that really a problem? I mean perfs may fall short of PC part under disguise but I don't think that is what drive the console market, it's about execution and Sony vision for the product:
I think they can outperform even more powerful PC hardware because the gulf between efficiency in execution and outright performance will grow even wider given a console which can be designed to render 3D at a fixed output resolution compared to a design which has to work with brute force on multiple configurations and be overbuilt in each field. They can afford to be far more elegant in operation because they control the hardware and software layers.
If Sony comes with with a low power system in a nice package,leverage all the search they did on motion/image recognition, ship a "complete" system from scratch (in regard to input/controller I mean pad, nun-chuck, cam, whatever tech they want to push ), a functional and complete on-line offering, and launch with the proper line-up covering most bases, all this at an acceptable price will the absolute 3d performances of the system be that relevant to the market reception of product? Honestly I don't think so.
I think so. If they leverage existing technology, don't pay royalties out where they don't have to (DVD/Blu Ray are a cost+ extra) and ditch Nvidia who charge like a wounded bull and roll their own solution they can have the best of both worlds. They already have an excellent and relatively efficient processor under their belt so why not throw all the high level shader programs towards the cell and keep a more basic programable ROP unit based on say the Emotion engine mated to basic texture units which they can get from S3 for cheap for instance and wrapped around a decent quantity of ED-Ram as a small external chip which can be quickly integrated into the main CPU after a die shrink as they'd own the I.P. for both??