Controls: Better, more compact version of the Wiimote nunchuk, wireless, integrated vitality sensor, rumble, better speaker, mic and it should be touch sensitive.
Hardware : 720P (maybe even 1080), games run at 30/60 FPS, at least 1GB ram (2 GB if we're lucky 
),at least a quad core proccessor, more powerful than PS3 but not as powerful as PS4/720 (bare minimum requirements for next gen ports). backwards compatible with Wii and maybe GameCube.
Online: Very much improved over Wii, somewhere along the line of Live. Most likely free. Online social gaming will likely be a big focus of the console. Some multi-media features (NetFlix and such).
Price: $250-$300. (Maybe up to $350.
launch Timing: 1-2 years before PS4/720. Probably Q4 2012.
Media: HD-DVD/Blu-Ray
Branding: Super Wii Cube Entertainment System 64...who knows...
And throw in some new kind of gimmick.
