If SEGA could release a N@omi 3(for example)arcade board but packaged as a console for less then $1000 with strictly arcade only games with Dreamcast/saturn peripheral compatibility I would buy it the minute it gets released.
well, it would have be beyond NAOMI 3. because NAOMI 3 is slated to use the new PowerVR Series 5. maybe even in parallel. while this will be awesome compared to current-gen consoles, I pretty much doubt it will rival nextgen consoles like Xbox 2, but especially PS3 and GCNext, since those two will be coming later and will almost certainly be at least a small step above Xbox 2.
PowerVR is good stuff, don't get me wrong, but they don't have the sort of budget that Sony/Toshiba/IBM and ATI/Microsoft/Nintendo have.
PowerVR Series 5 might be able to rival current highend PC graphics like NV40/R420 but with the massive amounts of funding going into the nextgen consoles, I don't see how PowerVR can compete.
back to this idea though, its very much what I want. an incredibly powerful Sega arcade board, with a hardware-identical console version, much like SNK's NEOGEO MVS arcade and NEOGEO AES console.
Sega would need to partner with one of the top graphics companies, either Nvidia or ATI. because frankly, Nvidia and ATI have most of the best engineers now (SGI/ArtX, Real3D, Evans & Sutherland, etc) and large amounts of them. I loved PowerVR in 1996~1999, but since then, they have not been able or willing to put out a highend part. NAOMI 2 was powerful only because it used 3 graphics processors (ELAN T&L unit plus 2 PowerVR2DCs) and loads of RAM.
If Sega is to come out with a new machine, with a major CE partner, its going to have to be noticably beyond Xbox2-PS3-GCNext, and it would be, given that it would be coming out 3-4 years after those consoles.