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An enhanced Cell, say 12-16 SPUs (instead of 8), with 512KB localstore (instead of 256KB), and two full-fledged PPUs (instead of one which has 2 enforced hardware threads), coupled with 1GB of RAM, and a 800 MHz GPU would completely rock... and do 1080p no problem in any game.

Upgrading the Cell would allow devs to do very simple incremental engine upgrades, and also lower the dev costs of the processor itself by a large margin. It would malso make PS3 BC very easy. Using an improved Cell for the PS4 would be an excellent business move by Sony, IMO.