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kowenicki said:
good, bad, garbage, awesome?

Low-end.

CPU side: 8-core 1.6Ghz CPU 

1) Based on 4MB L2 cache, this cannot be IBM's latest Power7/7+ architecture (http://en.wikipedia.org/wiki/POWER7). That one has 256kB of L2 cache and 4MB of L3 cache.  If this is similar to PowerPC IBM's architecture found in the Wii U, but has more cores, it's nothing special. You can add more cores, but if they are weak/slow cores, it's still a fundamentally weak CPU because it's very difficult to get games to scale properly across 8 threads. Additionally, more likely than not if MS goes with 8 cores, they plan to dedicate 1-2 of those for something else in the console (perhaps Kinect 2.0, OS, etc.)

2) If this is a Jaguar custom 8-core CPU, it's still slower than a 4-core Trinity APU because Jaguar is positioned below AMD's APUs and performance CPUs (FX series). The thing is Jaguar is just a 1-4 core CPU with 2MB of L2 cache. It seems odd that MS would spend $ to get AMD to design a custom version of this CPU. Either way, the new Jaguar core is targeted at tablets/low end netbooks. The core has been primarily designed for low power consumption, not high-end performance. On paper, 8 cores might sound impressive to those who don't follow CPU architectures but 8 "Jaguar" cores is low end by PC standards. 

3) If this is FX8000 clocked at 1.6Ghz, that's self-explanatory (Slow).

Any of these options mean the CPU is low-end.

GPU side: 

768 Steam processers @ 800mhz => very similar to a 1Ghz 640 Steam processor HD7770. That's a low-end GPU. (HD7750-7770 = Low end, HD7850-7870 = mid-range, HD7950-7970 = High-end).

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The idea of a next gen console with high-end components today is just a pipe dream. The PC landscape has changed completely from the days when Xbox 360/PS3 launched. Top end GPUs consume well over 200W of power and cost $500-1000. For example, NV is getting ready to launch GTX780 series with 235W of TDP at $899. Even if MS/Sony could purchase these high-end GPUs at cost, it'll still tip the scale at over $400 for the GPU parts and then the power consumption for the GPU alone would be much as the entire PS3....

http://www.sweclockers.com/nyhet/16402-nvidia-gor-geforce-titan-med-kepler-gk110

I think consoles will have to differentiate themselves based on features (free online gaming), multi-media, key exclusive games, unique controls/gaming experience, etc. Differentiating on graphics is probably unlikely given the rumored parts. Just to get to Samaritan level of graphics, Epic estimated that you'd need a GPU with 2.5Tflops. Almost all of the current rumors keep pointing to Xbox 720/PS4's GPUs falling way short of that mark.