The entire gaming landscape would be different today. Part of the reason why more and more games went multiplatform, was because they couldn't make enough money selling on just PS3. But if PS3 was easy to code for and at that $400 price point, it would have sold somewhere between 100-120 million. 360 would have been 40-65 million. 360 gained a ton of momentum off of having console versions of PC games that PS3 didn't have, or running those games better if PS3 actually had them.
Imagine the PS3 with...
Left 4 Dead
Mass Effect Not delayed for years.
No Oblivion Delay
No Bioshock Delay
Assassin's Creed franchise exclusivity
Ace Combat 6 exclusivity
Final Fantasy franchise exclusivity
Fallout 3 running smoothly
Fallout NV running smoothly
and a ton more games. Too many for me to remember or list. It would have been almost a complete repeat of the PS2 gen in terms of Sony exclusivity. Any game franchise that was exclusive to PS2 would have stayed exclusive to PS3.
Sony was focused on power so if they went with a traditional CPU they likely would have flat out had the better console as far as graphics comparisons go.