Zarthek said:
The way I see computer based gaming, more hassle = reward.
Games may be harder to set up and get going (See Punching the Baby Seal of PC Gaming...) but then most of them have mods and editors, not to mention actually higher graphics if you've got a beast of a machine. But it is nice to just get a game, sit down on the couch, and have it work.. it's all about what you're looking for.
I find from experience that this is the case for me. I have a decent enough computer to run Oblivion for example, so what do you think I'm going to do first thing? Download mods! But you have to take the time to learn the details, install them, make sure nothing conflicts, optimize the settings so you can get a decent framerate, ect. I have a really busy life, and gaming really means if I have some spare time while I relax. A lot of times, it's just so much easier to sit on the couch and shoot something.
With this in mind, it's just more comfortable to sit however and use a controller from across the room. With a mouse and keyboard, you're restricted in how you can play for the average person and their computer room.
That of course is just one perspective and only one issue that effects who knows how many people (hopefully not just me lol). I don't think computer games are dying, it would be quite embarrassing if they were replaced by motion control games especially. And after using mods, I won't even touch my old 360 copy of Oblivion because it just can't compete.