i would have suggest 2 GHZ on the CPU part and use the 24 cu GPU so that they will cut the CU to 22 and have 2.2 tf rather then 20 with only 1.8 tf. Use SATA 3 instead SATA 2. and suggesting 384 bit memory bandwidth rather then 256 bit.

1. The Cell processor probably costs almost nothing to manufacturer now. If it was $37 in 2009, it's probably not even half that today. The reason the PS3 still costs so much is profit. 

And as I said, if the Cell processor is too expensive then the add-on module would work. Kind of like the power base converter. That would actually have been my more realistic choice for BC.

2. It wouldn't have cost much more to manufacturer.

3. PS+ was optional on the PS3 and still did great. People would get PS+ to get many of those features, plus a far better online multiplayer. The connections for PSN regular users would be weak - think of it like PS2 dial-up online play vs. broadband online play.

4. The PS4 is selling great but could sell even better. The Xbox is making a comeback now. You're thinking short term. If the PS4 wants to be the next PS2 it's gonna need heavy hitters.

Plus you're taking this too seriously. Just have fun with it, pretend you're designing your own console. 

Just make it full backwards compatible to stop all these Remasters and add a Vita slot allowing the PS4 to play Vita games on the big screen rather than making the PSTV

1TB HD or more.

I would get rid of the wobble

I wouldn't change a thing about how it has been designed, the price they are able to sell it, their ability to keep improving it further still.

I think the most inspired / genius thing about the PS4 design is that they put a separate ARM processor with its own memory to handle all the OS functions, so the game developers don't have to clash / compete with system features when it comes to getting the most out of the main processor and memory available and intended for games.

Something I think is past due on getting added
- Media remote. Just something like lets my wife and self use features like DVD / Blu-Ray and Netflix etc without having to use PS4 controller.
- Ability to increase PS+ cloud storage, or at least manage the PS3 / PS-Vita library in cloud from PS4 (to make room for newer PS4 save file backups)

I think PS-Now is adequate form of BC. The PS3 system architecture and design isn't something they should have let cripple / hold-back the PS4 architecture. Consumers can continue to own their PS3 and if / not, then use PS-Now for older games, or simply wait until their favorites get ported to PS4 (most of the notable games are getting ported)

I would have used a powerful GPU instead of a super lame APU. Every mid-class PC graphics card is faster and provides much better details and effect quality in modern games.

Don't forget lost sales. The problem with BC is that people just end up playing old games instead of buying new ones.

I do like the idea of a hardware add-on though. And I agree with OP that a 70$ attachment would be a pretty reasonable price for it. Of course, might as well just buy a ps3 for BC because you get a wealth of other services to go along with it.

1TB HDD, 100% better CPU, 2.2TF GPU. I would charge $499 for it, selling it at a $20-40 profit and launch and cutting the price $50 by the end of the first. Also bundling first party games once they've made enough profit for the respective team. (Infamous, TLOU, Killzone)

Very few things. Remove the slant design. Put one USB on the back. Put standard Power/Eject buttons. Have the HDD tray easier to get to. Without the lining up issue and lots of drive cage. Option to just boot games directly. Without OS startup. All OS buttons are customizable so they can hide reduntant and not used things.