TGDaily has a very interesting rumour about the Xbox 360 getting not just upgrade parts, but an entire redesign based on upcoming hardware. After the next 65nm chip upgrade, the next 45nm one won't just be a die shrink, but it'll be a complete redesign, integrating multiple components onto one chip (system-on-a-chip design).
By doing this, Microsoft can shrink the number of parts in their 360, leading to a possible slim version much like how the PS2 slim replaced the standard PS2 a few years ago. Or, they could use the chance to do a redesign of their hardware, making it less likely to red ring or fail. We'd prefer the latter. [TGDaily via 360 fanboy via Uber Gizmo]
On the other hand, 8bitjoystick has their own opinion on the matter, saying that there's no way Microsoft will do a redesigned 360 this generation. The reason that makes the most sense to us is their current accessory design. The face plates to the external hard drives to the wireless adapters are all made for the current 360, and it doesn't make sense to have accessories that don't match the new design. Plus, it's unlikely Microsoft would put out all new accessories for the new box either. [8bitjoystick]