Honestly, Im sort of a 'techie' myself, but theyre pretty close in performance vs ease of development. I think they'll go with the #2 Specs.
Why?:
-Duel-Processors would match what Iwata-san's been yapping about in regards to the DS as a "hint to the next generation of hardware".
-Yes the duel-cpu set up would be more difficult for developers. But it would still be more simple than what MS and Sony are doing. Plus, the minds behind the GC's architecture could come up with some engineous dev-kits to help developers alot with the duel-setup.
-#2 Specs may have slightly less RAM than #1, but it MORE than makes up for it, being GDDR3 compared to (slow)DDR.
-Heat disipation would be close(Cpus/Gpus), but being an ATi 9800 owner I know a 600mhz card would put off alot more than a 500mhz card(they run very warm already today). Not to mention the added transistors and the many possible uses they could be for, as pointed out in the article. But the heat would be less as the new card would be manufactured at a much smaller die size than toaday's Radeon 300/350 line, so its moot to argue this currently.
-In favor of #2 Specs: Price is close, but I think the price difference between the Duel-1.8Ghz G5's vs the 2.7Ghz would be more than the difference between 512MB DDR vs 256MB DDR & 128MB GDDR3.
We all have seen how important bandwidth and RAM speed are with the GC vs the XB. Not to mention Memory and bandwidth will do more for your system than a faster processor would(i.e. when upgrading). All in all, I think that if they can develop the dev-kits to simplify programming with duel-cpus to optimize performance, thus utilizing #2 Specs' memory and bandwidth advantage over #1 Specs, then they will go with #2 Specs or something close.