As hardware begins to exceed development capabilities, IPs will start to become the only things that distinguish consoles from one another if their features are similar enough. Exclusives then are vital to the competitiveness of a console and will only become more necessary as time goes on. This is why all the main console manufactures have massive first and second party studios. Because exclusive games are console sellers. How would the XBOX have done without Halo early on, for example?
Eventually, computing capabilities will be so advanced that baring some kind of widespread human augmentation, graphics and physics will become "perfect" in a way that adding more resolution or more anything else simply won't be distinguishable by the human eye or mind in a way that makes it worth while.
At that time, the discussion will be purely about games and exclusivity will be the only differentiator. So no, it's not going away or becoming meaningless. It's only becoming more meaningful.
While yes, consoles are becoming more like PCs, this doesn't make them a bad thing. For $400 you get what amounts to a powerful computer that can serve many entertainment needs that consoles never could before. That's only more functionality. The benefit of the console is the standardized environment, both software and hardware. What you call "gimped" is them providing a clean environment that developers can consistently count on to be able to push individual components in a way that you can't do with pc's because any pc may have any combination of manufacturers of the various components (motherboard, ram, gpu, cpu hdd, etc). So 8 GB of Ram on a console can mean a heck of a lot more than it does on a pc.
From a publisher's perspective, console games are more reliable cash, less prone to piracy. From a customer's perspective, it's a cheap (pcs can get expensive fast), plug and play device requiring nearly no technical expertise, multiplayer competent (pcs still suck at multiplayer), small device that fits under the TV. PCs have a long way to go in this route and will have to gimp themselves in some ways to compete.