So I've read a bunch of thoughts trying to point to this, but when you got to the part where you said that developers would put their console games on tablets and that they will have more affordable price tags I tuned out. Why would games in the near future be priced lower on tablets than they would on home consoles? Tablets are a new market, prices are sitting outside of what they typically are, not sure why but it won't last. Consoles will adapt better digital distribution methods that will bring everything into sync.
Personally controls can be worked around with an external controller, bluetooth style perhaps. But I still prefer hooking a console up to a tv, though I wouldn't be against one of the current console makers to make a tablet console that has video out and portable multi-functionality, but will technology be able to keep shrinking like that? We have battery size limitations that could put a real dent in future superiority of handheld devices. We could have tablet consoles that you plug into an external adapter for home use though. But on the go it might be best not to play demanding games with it.
Since Apple is the biggest tablet company now, they could get into the gaming industry full swing, but I think we'd see the current game console makers enter with their own multi-tasking machines and Apple will no longer be king. The industries are merging, not shifting.
Before the PS3 everyone was nice to me :(
