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I have to confess that I didn´t read all your post (just some main points)....

but I do agree that sometime in a near future, we won´t have dedicated game consoles anymore. Thanks to this dumb AAA paradigm, videogaming is becoming more and more a niche entertainment. But this niche audience is not enough to sustain this paradigm.

It´s not surprising to see companies like Square, despite publishing many quality titles, launching financial balances with huge losses, or the overall consoles/software sales decrease year after year.

I wouldn´t say that the 8th generation will be the last one, probably we will have another generation and then videogaming will continue only on tablets and PCs, but NOT phones.