He is talking about the AnandTech article that came out about a year ago and was quickly retracted. I wish search worked because that discussion article would fully explain the misconceptions about the performance.
The second point being the multi-threaded processing, where as single threaded games only run about twice as fast. This was a known problem by MS, this is somewhat mitigated by only having 3 cores vs. 7 SPE's like the PS3.
The third point is that the CPU doesn't deal with out of order execution and branch prediction as easily as say a P4. This means unoptimized code runs slower. Once code is properly written for the PPC then higher performance than an P4 with an equivelent transistor count can be obtained.
All of this is difficult and challenging work, but allows for a higher level of theoretical performance. The PS3 requires even more work, but once again there is a higher theoretical peak performance. You can look at the PS2 CPU in the same manner, it is simply mind boggling what developers are able to produce with such limited resources. Where if you look at the xbox, there isn't much room for optimization to get an extra level of performance out of the console.
The x360 CPU is capable of some amazing performance, and the same goes for the PS3 CPU.