I think there's a couple of points that has not been brought up in this argumentation and that probably should be.
The first is the galloping costs of making games.
The second is the fact that this generation is entirely unlike other generations because of the Wii.
These two will also play a major role in what will happen.
Maybe it's possible to make monstergames for the PC right now. Actually, it IS. Crysis shows us that. But it's not happening, and there's nothing on the horizon that will beat Crysis in graphics (to the best of my knowledge). Why? It's too expensive, you do not really gain anything by it. It's better to make a game that has lower graphics-quality and release it on multiple platforms. It'll sell many times more (Far Cry 2 was a good example). So I think that unless PC games starts to sell much more things will stay centered around PCS360 as a unit.
Also, the nintendo factor. It's really messing things up with the way things are expected to play out. Suddenly, graphics is no longer everything. Things have started to really turn away from that. If the major reason for the PC being better starts to be less valuable, what will happen?
I don't know anything about it, and my analysis is probably pretty shallow, but I still think these two issues should be taken into consideration.
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