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Here's an interesting interview with Mr. Sweeney at Epic:

http://interviews.teamxbox.com/xbox/2169/Epic-Games-Tim-Sweeney-Interview/p1/

 

He states that programming the newer architectures to wring out the performance compared to simple single-threaded, single-core work is:

  2x as much work for multi-core

  5x as much work for Cell

 10x as much work for CPU-type code on the GPU

 

Sounds about right to me.  From the interview it would appear that neither the 360 nor the PS3 are close to being tapped out yet.  No big surprise on the PS3, but I assumed most AAA games were starting to effectively use the multi-core hardware in the 360.  Doesn't sound like that's the case.