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Garnett said:

Controllers are best for fast FPS such as CoD and Halo.


You have it backwards. Call of Duty and Halo do work pretty well with a controller, but they're almost sluggish as FPSs go. Fast-paced FPSs like Quake and Unreal Tournament require a mouse to play properly. Honestly though, the market for such FPSs has largely died out.

As for the original post, there just isn't much of a market for keyboard/mouse support on consoles. If there was, developers would make the effort to support them. Personally, I have no interest in using mice for my consoles; they're just not comfortable to use from a couch. I use my desktop PC for that.