Its the best idea they've had in years. To bad somebody else had it before they did.
The idea of using it as a server to the PS3, or 4 is nice, and I think Nvida was planning on something similar, only with remote super computers you can rent, and stream content to your self, including your game.
So basically you would be playing the game on a sever, not on your own console. Imagine Crysis all features at maxed.
I just hope and pray someone does a open hardware thing with something like Boot to Gecko as an os.
A modular console would be one heck of breath of fresh air.