> Hard to believe they're still developing PowerVR

They're quite successful with it, with Apple being one of their most famous customers (iPad, iPhone, iPod Touch).

> they seems to have re-targeted their products so they don't have to compete
> with ATI and Nvidia.

Yes, when Kyro III was ready for release in 2002 their partner STMicro pulled back, leaving them no other option than to enter portable graphics market and optimize Kyro III for that, resulting in the PowerVR MBX in the same year.

http://en.wikipedia.org/wiki/PowerVR#MBX

> I still don't see the point in focusing on the MPC5121e

Me neither. I'm a desktop user, and I consider a 400 MHz e300 too weak even for a netbook that could be of use to me.

> there are a lot of other low wattage PPC processors.

Exactly. That's why when talk was about the e300 in this thread I said that my vote would be on PowerQUICC II Pro (800 MHz MPC8377E), if it must be e300 by all means that is.