Well, to be fair, most studios are using a 3rd party APIs for their graphical needs, so they're only left to deal with physics and sound.
Thats a bit generous. Yes, Unreal has a nice toolkit...when it works. Unreal 3 is notorious for being a bit unstable. Even then, a LOT of work goes into getting graphics to work correctly. Its not as easy as "let the API do it", you still need to pass in the relevent data for the API to go and do its thing.
It's up to the Unreal, Crytech and Frostbyte engines the optimization part on the graphical side and they're pretty familiar with X86.
They're also very familiar with PPC, especially since Unreal 3 was designed with the 360 in mind. And again, barring some very heavy workload inner loop, most optimizations are done automatically by the compiler. Developers do not do manual optimization unless it is NEEDED.
I'm sure there won't be an overhead for the switch from PPC. Moreover when the port costs will get lower, I'd guess.
...you are aware most PC/Console games are developed side by side, right? The whole "porting" thing is a myth. Granted, there are a few legitamate cases of games being ported after the fact [Red Faction 3, for example], but those are the exception.
Although I really don't know how a console's OS manages CPU access, I'm sure it adds an abstraction layer at least... Not sure
Theres still a LOT of raw access going on. For example, even though the PS3 has an OpenGL ES 2.0 layer, it is typically not used due to speed concerns [specifically, the inability to immediatly grab data from the PS3's GPU's framebuffer]. The low level graphical library, libgcm, is used instead.
There is a LOT of mix and match between higher level API's and low level assembly, but you can get away with this because you have ONE hardware specification, allowing a large degree of optimization without having to worry about breaking something.