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Is the outrage towards PS4K proof that console gamers care more about performance and visuals than they're willing to admit?

It's the other way around. The concern is for what consoles stand for, ease of use, stability, guaranteed performance, unified userbase, and they gladly trade in some performance and visuals compared to PC for that.

Growing the user base faster with a cheaper slim version and sticking to one hardware spec will do more good for quality and quantity of games than adding a different spec.  A PS4K will slow down the growth of the user base and will add costs to game development.