Now 3 and a bit years into the 360's life what will the "xbox 720" have? I'm sure it's in development....
I am hedgng my bets on more power under the hood built in wifi and blu-ray. And a team for the sole purpose of improving reliabilty over the 360's - though the motherboard revisions and such in the 360 makes it very solid now.
I can't see them doing anything else except maybe 'motion sensing' in the controllers but I am NOT interested in that. Nintendo cornered that market and Sony made a pigs ear of it.
Part from the above the xbox has way more going for it than it's competitors.