I consider consoles to be "entry level" video gamer equipment. Fine for people on a budget, people getting started in the medium or people with minimal technical expertise. I suppose that makes me a snob. Ok, yep, I'm a snob.
With good reason, mind you. A good gaming PC, while expensive and usually technically daunting, is vastly superior to current generation gaming consoles in every conceivable way, including library of games available. For a recent example, I was playing Black Ops on the same release day as my XBox friends. At a higher frame rate, higher resolution, and thanks to Steam, for less money. (less pricks shouting obscenities into their headsets, too)
I didn't read all of the 1000+ comments on this thread but I don't honestly get all the people saying things like "at least PC's are ok for sims and RTS games". Seriously? The PC has had simultaneous release of every cross-platform shooter there is with the few platform specific exceptions, like anything past the first Halo game, which is only available for Xbox. Can't get the latest Final Fantasy either, but that's what PS3s are for.
Now, I should point out that I do happen to own and operate all three current generation consoles. I got the PS3 for the aforementioned Final Fantasy, XBox for the kids and the Wii as a joke. In addition, for one reason or another, I own a few titles for multiple platforms. For example, I've got these games for both PC and PS3: Dragon Age, Fallout 3, Oblivion, Battlefield: Bad Company 2 and Mass Effect 2.
Switching between the PC and PS3 on all these games feels like they've been extremely dumbed down for the console. Many features are just outright missing on the PS3 versions of several of those games. (most notably the Bethesda ones) The biggest difference was with Dragon Age - that crappy "command wheel" made me want to throw my six-axis through a window.
PC games get far more support, typically more DLC options and are the only platform that can allow community generated mods for popular games.
These are current, triple-A games I'm talking about, not Facebook games or WoW. (even though WoW made and continues to make more money than every triple-A game released in the last 10 years combined, but whatever - PC's dead, right?) I could go on and talk about how PC gaming is the wellspring of innovation for this medium, and how consoles are stagnantly producing the same shooters over and over with the ancient Unreal engine (developed FOR THE PC) but I've rambled enough.
Sorry Bob, I usually agree with most of what you say, but I just really don't see how PC gaming is dying. Your big argument seemed to be about the lack of desktop PC portability - my PS3 and 50" LCD ain't that portable either. And when I want to sit down in the living room and watch movies or TV shows, I usually fire up my PS3, have it connect to my Windows Media Server in another room via gigabit LAN and browse through terabytes of collected content.
So, hell, even my consoles use PCs.