I would like to see what would happen if we took 1-2 millions and give them to a prolific indie, someone who has a good record of releasing good games all by himself (someone like derek or cactus or whoever), and make sure that the money is used solely on game production assets (not cocaine or stuff).
The result would probably be awesome.
Hmmm. The only way for a one-person indie team to usefully spend that money would be to get more people involved, by hiring, subcontracting, or outsourcing extra work. At that point, the whole thing starts to look fairly indistinguishable from a team which is about a quarter of the size of Double Fine.
Or were you thinking of seeing how many one-man games you could get for $1m? Just pay for Derek or Cactus to live comfortably for the rest of their natural lives, and get 40 or so games of out Derek, or a couple of million from Cactus? That'd be pretty cool.
GTA IV was rumoured to cost $100 million. For that money, I reckon you could cobble together a rudimentary cloning facility for indie developers, and have them make more games than the whole of humanity could ever play.
Because clearly Derek or Cactus et al are going to want to live 'comfortably' (which would take in excess of $3 mil, fyi) while generating several times that value for someone else :/