much like how the fat psp vs how the same game will run on the slim psp.

you may see a increase in speed running the same game. notice that May be an increase

we do not know yet what the effects will be until they do a test like some did with the fat psp vs the slim psp. the slim psp gained more ram and it had a + effect to running software

no they stated this:

The PlayStation 3 Slim gaming console from Sony Computer Entertainment is not only smaller and cheaper, but adds hardware enhancements that make it speedier, including a new Cell microproces

Sony has made some enhancements under the hood to boost its processing speed and power efficiency. The gaming console will carry an upgraded version of the Cell microprocessor, which is being jointly developed by IBM, Sony, and Toshiba.

sounds like BS

Aha I figure they had the 45 nm Cell, now if only I can find out if the RSX is 45 nm

umm...isn't the slim suppose to have a slightly different version of the startup screen.

http://www.vgchartz.com/forum/thread.php?id=83388

maybe it gets a bit better performance but sony is using it for their OS??

its not IBM released the upgrade stages per nm scale for the Cell processor back in 2007:

it was posted before

I think its great news!
However can i ask what the point of more power is at this point, is it really needed?

Like what they did with the PSP...maybe?

Is it needed, definitely not.  If it's true, would be awesome!  I don't know exactly how it would be used, though.

So ps3 can finally do blast processing?

Can it play Left 4 dead now? How about Donkey Kong Country?

Remember... software is king when drooling over theoretical system performance.