Why they need to be "duct-taped, enhanced versions of the current hardware"?
Unless one is using a very lossy version of the term, they dont need to be just that, I mean, IBM is still making new PPC CPUs, Cell (like?) is still evolving, ATI and Nvidea are both making GPUs that are BC... (althought some aditional work may be needed to match the costum specs of 360/PS3).
They should be able to deliver a BC console tthat is both significant more powerfull, yet can be released at a significantly lower price/consumption point, low-mid end ATI/NVIDEA GPUs (4650/9600s) already have much more power and performance/power ration than xenus/RSX and are much cheaper than those (original price) (evan the low end, 4350/9400s, should be near that).
They may not be the equivalent to a high end PC, meybe not even to a mid-high end (more mid than high end) one, but that is very diferent from "duct-taped, enhanced versions of the current hardware".
Thats how I feel.
There is no reason why MS can't just take waternoose and enhance and expand it. Faster clocks , mabye double the cores , ooe and perhaps more cache. Still have a tiny chip on 40nm or even 32nm and keep the bc with the original waternoose.
Then they can take a gpu with a target of 40nm instead of 90nm. Base it on the xenos but update it for dx 11 functions and push it out the door.
You'd most likely have a very small cpu (the xenos was already small ) and a relatively large gpu. They can then add in lots of ram which would really make a diffrence in the graphics. I think 8 gigs would put it on par with high end computers of 2009/10. make one model at $300 with no hardrive and perhaps 64 gigs of ssd memory for saves and dlc and what not. One model at $400 with a 320 gig drive (should be cheap by 2010/2011). We already saw with the 360 that if you hit first and offer enhancments from the last gen gamers will flock to it and gamers buy alot of games. If MS launches early again they can most likely gain alot of that group again and that would help them stay a float for the first year or so. I'm not sure how Sony would fair as they jumped in a year later at a $100/$200 higher price point , some of their hardcore gamers may be put off by it.
I don't know how much a system like that would cost , but it may be cheaper than the original xbox 360. If they aim for 40nm they'd have 40/32/22 most likely like so far this gen has 90nm /65nm and most likely 40nm. I don't know what comes after 22nm. But i'm sure there will be something .
If then during the next generation the advanment of micron processes drop off and don't budge we may see smaller leaps in future generation and most likely a lengthening of the generations. But I think we have one more left with a sizable jump.