Let me get this straight. You are saying that because they are shipping PS3s with a CPU with one broken core when the full potential of hat CPU is eight cores, which is a widely known fact and announced prior to the release of the PS3, that 7/8ths of the CPU makes the CPU 'practically useless' in terms of power?
No, you couldn't misunderstood more. It's got nothing to do with performance or power. I'm talking about costs, an entirely different concept. Often *more* than one core is 'broken' when manufacturing, and in that case the processor is discarded. You also pay the discarded processors, which are way more then the average discarded x86 processors. With audio equipment it is very common: manufacturing processes aren't perfect and standards are thight, and only a small percentage gets over quality control, so that you pay a lot more *but* you reach higher standards. Of course, this concept of higher standards doesn't apply to computing, so you just end up paying more for the same. That's one reason why semiconductor companies always try to improve their processes: with R&D they can actually reduce costs, something every gaming console producer keeps in mind.
I seem to recall some very impressive real time rendering demonstrations using just the Cell and given your other comments I would be happy to concede that you are indeed mistaken.
Well, that explains why they put a nVidia chipset in at the last minute instead of a second cell... you can do amazing things with a multithreading setup running simultaneosly on many cores (something the X360 isn't devoid, having 3 custom built PowerPC's cores), but as far as GPUs go, they are far more powerful *and* cheap in their specialized area. Think about CUDA, and tell me if Intel or IBM processors could do the same in an even remotely similar price range or not.
Nobody uses floating point calculations now in this day and age where we have CPUs with all sorts of funky on chip FPU like functions, or whole cells dedicated to the task and especially not games where 3D maths involves all sorts of crazy calculations. What were Sony thinking...
There aren't just many other uses of that kind in a game besides graphics, unless you want to do audio processing or video editing with a gaming console. It's the same reason because jumping from 32 to 64 bits in gaming never was very useful. It's as simple as that. Even if you are going to reproduce an entire galaxy in a game, you just have to create an illusion as opposed to a realistic simulation with real scales, and you wouldn't gain any advantage in doing it the realistic way apart from obvious headaches.
The damn hype that Sony has created after all is all about misinformation (beginning from the prerendered movies shown as in-game clips), and after two years the hype is finally decreasing. In that respect we ought to say that Nintendo was utterly honest and got opposite results.