Cell was supposed to go into TVs, computers, and all kinds of consumer goods but that never happened. It's pretty much dead in the water. There were no avenues of recuperating the research and development costs and there is no reason to carry it on to the next generation at this point. There were some truly amazing road map plans for Cell going to a kind of multi-multicore architecture by 2013. It would have been a true beast, but if Sony went that route, they would have no developers backing it.
The real key here is in the Vita. No doubt, if Cell was a commercial success, we would have seen a miniature Cell in the Vita but Sony opted for a more standard CPU instead. I have very little doubt this is the direction they will go in with the PS4. If Sony was going with something really exotic in the CPU, we would have heard about it by now since development kits are already going out as well.
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