That 35watt TDP also includes memory right? it's also a 40nm chip, will be interesting to see how they could tweak something similar to that... just a gut feeling though, I think that they would choose 640 stream processors, it fits nicer to the original dev kits of project cafe and the bump in performance rumor also comes with what you were told about them finishing the chip in december/janurary... so maybe it's similar to something like a e6760 in design, but based on a slightly larger mobile gpu (the e6760 is based off of the 6700m series)
I'm really interested to hear if they are building the GPU on a 32nm or 28nm process, both are avalible to NEC and I would imagine that Nintendo is taking an approach to the chip similar to the Xbox 360 Slim which, if I'm not mistaken allowed for sharing the 10MB cache of Xenos with Xenon (though that isn't used as to allow compatibility to original 360s)
A little speculation: a 640sp 700mhz GPU with 32MB embedded memory share-able to a 3 core 6 thread ~3ghz IBM power7 related CPU all on a 32nm/28nm chip, would be a pretty strong performer, especially with 2GB ram. The chip could probably fit under 80watts TDP as well.
I also think Iwata might have increased the specs of the machine around the beginning of the year to match his "deeper" targets of Wii U.
700MHz is too high for that many SPs. 400-550MHz would be more likely.
Two very important things about that chip should be noted.
1. It's 40nm and the Wii U GPU could very likely be made on NEC's 32nm process, or their 28nm process, which will drastically drop it's TDP to ~25watts.
2. The e6760 is embedded with memory and other unnecessary parts, so that chip would likely work under 20watts.
If that wasn't cool enough, it's based on the HD6570/HD6670 and the wattage needed to go from 600mhz to 800mhz on that chip was only 7 watts on the 40nm process, so using a similar chip at 32nm for instance (with only the GPU chip) you could assume 640sp @ even 800watts should be doable for 35watt TDP today, and that would give you 1024Gflops, Or the just over 1Tflop that we have heard from rumors and even BG in the past.
If Nintendo did this, it would be very interesting, but if they used only 480sp with some fixed functionality shaders, I could see them producing some really cool effects, but I'd rather have them create a SoC that is under 80watts that uses the 640sp @ 800mhz and a 3 core CPU ~ 3ghz on the 32nm chip with some fix functionality shaders, and 32MB embedded memory shared between the GPU/CPU.
Fantastic console specs even if they don't look amazing on paper, the Wii U wouldn't show it's age for years with the rumored PS4/720 specs where they are.
Assuming you mean 800MHz, no, it can't. You need to calm down a bit. Your expectations are getting out of hand.