Really.... I don't want to see another Sega. It's really not required.
I'd like to see the next gens hook up with someone like Google. I'd like to see them do everything they currently do, but also have the flexibility and power to kick out... the world, and a world that is supported, upgraded, open, and standardized.
Sony was doing well to attempt Yellowdog Linux on their console. However this was poorly implemented. (Sec before you scream

) The way they did this left the console effectively living a split personality. It also required setup and reading that left it to a small community. Of course, when this capability was brought out, this was the state of technology and Linux. We've moved past this barrier especially with Android, and with Android's user interface it's simple enough for grandma.
The thing is, the new consoles aren't going to be cheap. Even the ones that are (Wii) have more then enough power to run pretty much all the bells and whistles.
If you're referring to bells and whistles as the latest and greatest tech (Blueray at the time), that would be a solid debate.
It could be argued that starting low and allowing the bells and whistles through upgrades might be the path, but this has proven to be a bad path. Both the 32x and Sega CD were great pieces of hardware, but only a small percentage of Sega owners actually bought one. If I were a game designer I'd avoid these upgrades like the plague as it limit's my audience. This means fewer titles for the upgrade. The upgrade effectively defeats it's self as fewer would buy it due to the lack of content (meaning fewer devs want to touch it).
Nintendo did well without the bells and whistles, but it owns it's own little niche. This is kind of like Farmville and other social media games.
On the other side of the house, you've got a huge player base that wants more complexity in games. This base doesn't play much Farmville or Nintendo. These are the people who go back and play their favorite oldies and come back saying "Wow, I don't remember the graphics being so horrible". This base requires the latest and greatest hardware to compete with hardware that will be out in the coming years. Because of this it's more then worth it to come out with a piece of hardware that is so powerful and complex that first games only use a percentage of the available power. This gets expensive.
Where do I sit? I'm with the non-Farmville/Nintendo players. Course, all of this is pointless I guess.... if I have my choice I'll have the best of the "game players". The PC. (BTW The X-box controllers works great on it.)