I like the OGRE idea. A product based on OGRE + Lite-C (needs much better debugging though) + OpenAL + Bullet + ... could be quite awesome. OGRE would bring OpenGL support and probably it would be easier to compete with the huge Unity team. This will never happen though. JCL won't give up his investments in the current engine.

PhysX of course is a lot better than ODE but I am still not convinced that it's the best choice in the long run. They fixed bugs, added features and polished it but it's still noticable that PhysX is originally based on ODE and has some flaws like lacking cylinders.

The biggest problem is the editors. I have no idea how this could be fixed without ditching WED and starting anew.