The PS3 does not have seven processors, any more than the PS2 had three processors. (EE + 2 VPUs)
The PS3 features the Cell Processor, which is a PPC 970, the same chip that was in the last iteration of PowerMacs. The Cell Processor has seven on-die Synergistic Processing Elements (SPE). Each SPE has 256kb of local memory - and in the PS3, each SPE never be able to address (i.e. read/write to) more than that 256kb. Thus, the main processor spends most of its time making sure that the SPEs are always working on more data - if a SPE runs out of data to do operations on (considering how fast these things work, 256kb is not a lot), then it effectively shuts down until it gets more.
In one typical usage scenario, the system will load the SPEs with small programs (similar to threads), chaining the SPEs together to handle each step in a complex operation. For instance, a set-top box might load programs for reading a DVD, video and audio decoding, and display, and the data would be passed off from SPE to SPE until finally ending up on the TV.
So yes: the PS3 has a spectacularly powerful processor, which is going to be even more difficult than the PS2's emotion engine to program for. When properly utilized, the PS3 will be able to output some gorgeous graphics... but...
...to be honest, I'm not so excited to see the PS3's graphics: I know what to predict, it's a certainty that they'll be beautiful and gorgeous (as long as you're seeing them on a HD tv), though the same could be said for the XBox 360. Indeed, in this
interview with IGN, Magnus H??gdahl, the lead designer who worked on the critically acclaimed Chronicles of Riddick, said that the graphics of the XBox 360 and the PS3 will be the same:
The PS3 will have a content size advantage with Blu-ray and a CPU advantage for titles that are able to utilize a lot of the SPUs. The Xbox360 has a slight GPU advantage and its general purpose triple-core CPU is relatively easy to utilize compared to SPUs. I expect that it will be near impossible to tell Xbox360 and PS3 screenshots apart.
For the first time in my life, I'm not excited to see the next generation of video game consoles. I have this feeling that they'll be more of the same that we saw this generation; with higher poly counts and more sparkly effects. Since I don't have a HD tv, and don't really have the cashola to buy one, the benefits of high polys are lost on me, so all I'll ever really see are the sparklies.
Do you remember how you felt when you first played Mario 64, or Final Fantasy VII, or MGS? I was floored. The transition to 3D was so amazing, and it added so much to the experience. I don't feel as if the video game industry has advanced at all since the PS1/N64 generation. Which is why I'm half-heartedly looking forward to the Nintendo Wii - Nintendo's weird ass controller is the only new thing that this generation has going for it.