The two aren't really comparable. The main thing that needs to change is the mask which has the chip design imprinted on it- these each cost many millions. Even the smallest change in the chip design will render the mask useless. From a manufacturing PoV whether the chip is Power6/7 or 470 based will have no effect on it's cost. Nintendo will have to pay for new masks anyway.
However, saying that the Xeon processor is a PowerPC chip is like saying the Wii U is going to have the Watson CPU in it
The Xenon chip is a PowerPC based chip, just as the GC and Wii processors are PowerPC based. I believe the name PowerPC, and is now just Power ISA, might have been dropped but chips are still been build using it's instruction set.