The only reference of 1TFlop comes from an interview with Ken Kutaragi from the 30th Anniversary Interview he did for Nikkei in 2001. He talked in abstract terms of the future (perhaps why he's a visionary?!?) of digital content and media and his vision of the topology to support it, it's here that it was said:
"One CELL has a capacity to have 1TFLOPS performance"
Later, in 2003 the nascent SCE Suzuoki Patents on Cell, filed in 2001, were published. In them they had an architecture capable of 1TFlop using 4 PE's and 32APUs fabricated in 65nm. Subsequent to this initial patent from 2001 that's a "landgrab," STI altered the design of Cell - as was reflected in the STI patents on Cell from 2003 - likely based off internal preformance and effeciency simulation. They introduced the concept of the SPU, which differs from an APU in the complex built-up around it which is much more complex. Namely they distributed the work of the formerly centralized DMAC to each SPU, doubled LS size, the interconnections grew, as did buffer and control logic. Then, likely due to the competition (or lack there of), they scaled back their design and lithography goals and I believe their timetable for entry was skewed.
So, what's left is still a single processor which has more amorphous computational power than the competition's entire system and, while lesser in sheer computational power, is vastly more effecient and capable than the initial design. It's also a processor which will likely be much more profitable and profitable sooner as when they hit mass production with 65nm out of Nagasaki F2, they'll have an IC that's just slightly larger than then the 180/(relaxed)150nm Emotion Engine from 2002.
The IC from the Suzuoki patent that hits 1TFlop would be highly feasible based on what we see in the ISSCC Cell; all preformance goals on the macroblocks were hit at 90nm, area is inline with projection, but it's cost (both production and as measured in externalized costs of developing for), timeframe and lack of necessity seems to have doomed it.