People seem to think this is leaps and bounds above everything else, but they're missing the details. In order to obtain that much performance, you'll need a task which parallelizes well so it can be broken up into chunks for the 8 SPEs. Graphics rendering falls into this set of tasks, but a lot of general applications just don't gain that much from parallel processors. Even when you have a task that does parallelize, writing parallel code is quite a bit harder than writing code for just a single thread of execution.
I've seen a lot of hype about having the Cell in your laptop talk to the Cells in your desktop, microwave, and TiVo, but you have to consider real-world limitations. When you set up a network like that (presumably wireless), you're going to be limited to around 100Mbps. In computer clusters and supercomputers, one of the main limitations of performance is the communcation bandwidth available between processors, and the latency of the network. To build a "home supercomputer", you not only need a task that parallelizes well, but one that doesn't require so much inter-node communication that it's held back by a slow network. You can't work around this problem with hardware magic - if the task you're working on requires lots of communication bandwidth, you're going to be held back.
So how much beyond a modern PC is 250GFLOPS anyway? Not much! A GeForce FX at 500MHz does
200 gigaflops. An AMD Athlon's peak performance is
2.4 GFLOPS at 600 MHz... if we scale this up to 2.2 GHz (high-end Athlon), that's 8.8GFLOPS (note: As we're talking about theoretical performance, nonlinear factors like bus speeds can be ignored). Basically, if the Cell dedicates most of its power to graphics rendering, you'll have computation power in the same range as a fast PC of today. Given that we're not going to see any products based on the Cell for a while, this isn't going to be the end of the world for Intel and nVidia (let alone the fact that Cell isn't x86).
Consoles using the Cell will have the advantage of only having to render for TV resolutions - at most 1080 lines, while PCs will be rendering at up to 1600x1200, but if you look at recent history, you can compare the xbox to a then-good PC with a GeForce3 (which came out at around the same time) - the xbox looked better, but PCs did catch up and surpass it's performance and it didn't take all that long. Consoles have to be very high-end when they're released, because the platform doesn't change for 2-3 years, and they still need to be "good enough" after a couple years, before the next generation is released.