Hmm, hopefully he's just talking in relative terms, if nothing else, especially with the extra controller it's important that it has at least 1.5-2GB of ram.
If it just has 512mb-1GB, they're really shooting themselves in the foot.
Hopefully the final console build will be at least 3x4 as 'powerful' as the X360-PS3.
As for the controller, I'm not really a fan, but it does have potential for games such as RTS's.