An AMD APU has the advantages of a provider with a known history of having good cores, good memory architecture, good graphics, good physical implementation, and good tools and possible software compability with a broader ecosystem. It may not be the best at any one thing compared to desktop competition, but for what the console world gets it's superior.
While Jaguar is not released, it seems possible that it will have an absolute per-core lead in performance versus an A57, though power consumption could be higher.
In this case, AMD has better timing even if the ARM turned out to be superior, which is something to be debated since ARM has no history pushing to this performance and power level. Who is going to design a console with a CPU core that won't be on the market until 2014, with no existing CPUs that use its ISA?