Not enough to upscale?

They won't. You're not entitled to an upgrade.

http://www.prnewswire.com/news-releases/sony-pictures-launching-ultra-4k-streaming-service-on-april-4th-300242378.html

Just in case anyone missed this news yesterday. Pretty clear Sony wants a home console that can run this service aswell.

3 things make me suspicious of this rumor:

1. Leaker said he got out of a meeting yesterday, details like that should make his/her identity fairly easy to uncover and that's the last thing a leaker wants to happen
2. GoW4 releasing alongside it. Assuming this "PS4.5/PS4K" releases this year it means GoW will be released within about 9 months after the announcement, tops. And I'm assuming Sony will make GoW4 their main reveal at E3, which would make it about 6 months. What's the last time one of Sony's major IPs had such little team between announcement and release? Not to mention, what big exclusives would Sony have next year then?
3. Sony not deciding on the CPU yet, even though it could affect pricing by $100, this isn't exactly some small detail. Also the dev kits already being in developers' hands even though Sony haven't decided on the CPU yet

'rumour' should be added to the title, atleast that's what some sensible outlets are doing

http://www.pushsquare.com/news/2016/03/rumour_ps4k_will_cost_usd399_will_feature_4k_blu-ray_and_will_boast_better_graphics

Thats pretty much my stance as well, I dont even have a 4k TV. I have absolutly no problem with playing games with worst graphics as long as they run well enought (even if they are 30fps while they are 60fps on the 4k). Theres 0 chance Im spending that much money on a new console just to upgrade the graphics.

True, especially seeing the lack of exclusives at launch with 8th gen consoles

Sounds awfully vague and a lot like some people would like to hear. That is, I don't believe this rumor to be true. I don't doubt the existence of a more powerful PS4 model (there's just too many believable leaks for it to not be true at this point), but this specific rumor doesn't sound beliavable.

I think right now the 4K market is not that big, so it will mostly sell to enthusiasts. However, each year going forward 4K will be more and more important. This holiday is going to be a massive push for 4K. We will have most marketing in the electronics field talking about 4K HDR TV's, 4K Blu-ray, and now 4K gaming. That message is going to conmtiue through the superbowl, and on and on for the next few years.

This could end up being a big mistake, but no where on the level of not making the Vita a smartphone. Not building a text and dialer app into the Vita OS lost Sony any chance of competing in the mobile business, and that lost them billions. Even in the worst case, this will only upset people for a moment, and Sony will get the message, and go back to the drawing board.

I don't think that will be the case. Now PS5 will definitly carry over every PS4 application. We won't be starting out day one on a gimped OS with no games like we did this gen ever agian. But, PS5 games should be rendered in a completely different fashion to what PS4 games are. The leap from PS4 to PS5 should be about a 20X leap, which will allow rendering tech, AI, physics, and streaming that are just not possible on the PS4. I am talking 40TF GPU, 128GB of RAM, and a 10TB SSD. That is the stuff a PS5 is made of, a true generational leap from where we are. Anything else, would just be an iteration of the PS4. 

They don't need a GPU twice as powerful to upscale the image to 4K, only a better upscaler and an HDMI 2.0 output.