One way to extend their current model would be to use a variation of the PPC970FX or MP. The PPC970FX took 62mm2 at 90nm lithography, so at 45nm it would probably be some 20mm2 or very roughly the size and price of the current Wii CPU at 90nm. The PPC970MP was a dual core implementation, with not quite twice the die size since the cores shared some processor elements - this could also be an option, particularly at 32nm. The performance of the PPC970 is, clock for clock, similar to Intels C2D, with a collection of perks. If I were Nintendo and wanted to apply this core, I would target some 2GHz for very low power consumption. That number is grabbed out of thin air, the goal being sub 5W CPU power draw at full blast, the 90nm PPC970FX was shipped at up to 2.7GHz. There would likely be some additional work required on the memory bus/controller side to create a suitable console environment.
Going beyond dual core probably wouldn't make any sense, and I'm not certain that two cores would be sufficiently utilized to justify the additional cost and heat. It may well be a better idea to simply increase the clock of the single core as long as we're in a fairly sympathetic part of the clock vs. power function as we should be at these low power levels.
Another option could be to use an adapted PPE, but I'm not sure that this would necessarily be a better move.
Of course, this assumes that they want to extend their current CPU architecture upwards. They may choose to go ARM Cortex9 or some such, break backwards binary compatibility, but gain in other areas.
Probably for a dual core they would be better served if they just used some acelerator, would keep dev easier, so unless it is very revamped (not in order, for multithreading) a PPE would be out of question.
Anyway what about modern cores like a single core phenom/i7/power7, or even other future cores like buldozer and such?