I think more titles could support K&M but I think they feel there is no need. Plenty of PC gamers (or potential PC gamers) are steadily moving to consoles without K&M. The big issue is ergonomics - most consoles are under a TV in front of a sofa or chair, hardly a good spot for a K&M.
I probably still play more FPS on PC with Valve titles, and I have UT3, but I've found it easier to get the hang of a controller (still not as good!) rather than go to the trouble of putting a table, etc. in place so I could use a K&M to play.
It's a good thought, but I think the bigger market they want to start fighting for is the one currently flocking to the Wii, hence Natal and The Wand.
Try to be reasonable... its easier than you think...







