power draw, heat, platform size, do you really want a PC sized console with like 4 fans that heats up your room without a heater during the winter that costs like 800 dollars again? 

Why are people getting worked up over a rumor?

I finally remember,this 1.6GHz rumor matched a old rumor about nextbox will use PowerPC A2(I'm not saying i trust that)

No, they were not, they never were, they were always medium to low spec compared to PCs.

That post is hard to read man. And the CPU doesn't have too be really powerful in the PC space to be very powerful in the console space. Even at 1.6GHz a 8 core CPU is pretty impressive. Tho at a guess I would say many devs may prefer the PS4's supposed quad core design, in terms of ease of use. 

Kaveri (low power Steamroller bassed CPU cores) and Jaguar cores are aimed at low end/mobile PC space, they use low power, low heat and are relatively cheap. 

The theory is that the custom SoC that MS commisioned will utilize 8 x86 cores, there have also been several sources that suggest that there will be some kind ARM core in the mix as well. Now obviously too have 8 CPU cores they will be low power low frequency cores too keep within the power and heat requirements of a console. I think Kavari (steamroller cores) is much more likely than Jaguar tho as Jaguar cores are probably a bit too low end, but I'm just going off speculation I have seen and several people have made a case for jaguar cores even if I don't think it's likely myself. Most of the rumours have suggested some kind of APU/SoC design which fits with an AMD fusion bassed design like Kavari. The low clock makes sense considering the reports of low yeilds for the chip in the next Xbox, lower clock rate should help improve yeilds, tho they may increase the clock rate for final hardware if they can improve yeilds in time.

Now if we look at Kavari specs 

Kaveri (28  nm)

Steamroller-based APUs will be divided into versions for specific price-points and markets:

Kaveri APU covers the A10, A8, and A6 series of the 3rd generation APUs.

Kaveri is to contain an ARM Cortex-A5 MPCore as part of AMD's use of TrustZone IP from ARM.

Kaveri will contain GCN-based graphics, although it is unknown whether these will be Southern Islands or Sea Islands based GCN.

Includes support for DDR3-2133

Seems to fit the bill, as a base for whatever custom design they are cooking up for the next Xbox. 

The rumour for the AMD 8 core CPU actualy suggested that the latest dev kitts have been using a (presumably heavily underclocked underclocked to 1.6GHz) AMD 8 core FX CPU. And the Dev kitt before that supposedly had an 8 core intel CPU, assumedly as AMD didn't have any 8 core CPUs to use as a stand in at the time. So this suggests that the final CPU architecture isn't available yet, hence the further speculation that they are targeting a chip for the final hardware that is not produced yet, like Kavari. 

It's all just speculation tho.

I don't think the problem is with people getting worked up over the rumor, it's more like it's really hard for some of the more tech savvy people to try to explain how the performance/price/form factor works with modern hardware to some members here. I'm just glad a lot of people still have enough paitence to try to explain though, the problem is generally the people who don't want to take in the right ideas as to why things wouldn't make sense even after like 100 paragraphs of how things work in human terms or in hellish details.

1.6 GHz!!!!!!! Confirmed than, MS is building supercomputer:

"The Blue Gene/Q processor is an 18 core chip running at 1.6 GHz with special features for fast thread context switching, quad SIMD floating point unit, 5D torus chip-to-chip network and 2 GB/s external I/O. The cores are linked by a crossbar switch at half core speed to a 32 MB eDRAM L2 cache. The L2 cache is multi-versioned and supports transactional memory and speculative execution. A Blue Gene/Q chip has two DDR3 memory controllers running at 1.33 GHz, supporting up to 16 GB RAM."

http://en.wikipedia.org/wiki/Blue_Gene

On the serious note, first thing that came to my mind when I read this is that (at the time) crazy rumour of 16-core 720 - so naturally I thought of PowerPC AC2 (some version of it, not necessarily 16-core):

http://en.wikipedia.org/wiki/PowerPC_A2

I think the point is that both MS and Sony are trying really hard to keep the cost down because they realized that the general masses still look at price as the prime factor after looking at the business practice of Nintendo from the 7th gen. They forgot that console are toys and tried to make them into something they are not and ended up making way less profit than Nintendo did. They are learning and trying to improve on that front while keeping a reasonable amount of power for their new consoles, but seriously, don't try to sell me a video game toy that's more than 400 dollars or like 5 different SKUs to make you spend more in the future with hidden service charges, I won't fall for that shit.

Interesting. I'll wait for more info though as all other info has had 3GHz plus.

Microsoft does not care what you do with their system as long as you use it and put money in their pocket.