That is a really good point. What proof do we really have that this isn't just a standard hardware revision taken overboard by the rumor mill? Just saying that you have multiple sources isn't good enough if your multiple sources all got the information in the same place.
I can't take credit for it.
AlStrong among others were cautioning this when the original rumor came about.
Of course, I hope this is the xb720 and that the die size is 550-600mm2 @ 32nm and just under 500mm2 @ 28nm, but realistically, I can't see MS going with a single Huge SOC at the start of the generation.
Yield will be low which will cause costs to rise and there would likely be other sacrifices such as power or speed with such a large monolithic chip.
Pro would be that the GPU and CPU would/could have great low latency communication, but I'm not sure that would be enough to make up for the cons.