Yup, threading it like we do with GPUs these days. Somebody writes an API that does basicly everything, and we run shader-like programs (kernels) on the individual cores.
About having too much CPU power: (oNyx)
I somehow can’t get enough cpu-cyles… ever. Think about realtime radiosity, realtime volume rendering (scattering), real vegetation (not a few patches of grass every other meter, nor intersecting swinging grass-quads), all eye-candy requires loads of cycles. Sure, you can write games that do without, but don’t you like pretty graphics? You can’t get true immersion in PacMan (or Q3 for that matter).
Oblivion wouldn’t have been sold so much if it wasn’t for the graphics, so surely a lot of people care about eye-candy. That’d be a big market to ignore, for an indie 