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You are right on the integrate on mainboard part, but designing a whole new Mainboard is more difficult i think, and people had to buy a new workstation...
http://likerabbits.blogspot.com/2006/09/hard-cell.html
I made a blog post.
In summary; Cell is expensive. But only because the most expensive solutions use large amounts of XDR RAM and Cells which are the cream of the bin sort when they finish production.
How many SPEs does a developer need anyway? And Sony has proved XDR can be affordable in limited quantity.
Can they make do with DDR PC2-8000 for the RAM?
At some point you have to make a compromise between a $800 card (or cheaper) and an $18000 blade server. One Cell, with 4 or 5 SPE units on board, adequate amount of adequate speed RAM, etc.
Remember the Cell has a lot of processing power so it is also a HOT chip to run. The 2.8GHz Mercury card soaks 210W, which is 3 times the amount a PCI Express slot can support, for the chip, 8 SPEs, and 5GB of RAM.
You could substantially accelerate gaming, image processing, POVRay/Blender, and things like encryption etc. with a lot less.
I don't think a port of ffmpeg really will benefit Cell - only because, you are going to be using a chip capable of realtime rendered high definition graphics to decode an MPEG stream. That seems a little TAME.
2 or 3 ~100W Cell boards, with 256MB DDR2 RAM each, is an instant render farm. How fast could you render the entirity of Elephants Dream on such a thing, let alone just play an 800MB AVI back?