The PC vs. Console cost debate is indeed a fairly dumb one, because of two things:
a) When you say an $800 PC can run Specific Game A, do you mean you can buy a PC for $800, or you can build a PC for $800? They're two very, very different things.
b) Does anyone really only buy a PC for games? I own a $2200 MacBook Pro, and it's barely a gaming machine--on my last two computers (covering the last four year), I've played 3 video games on them. One more will be added to that list with the release of Spore, but in general I own a computer for a million reasons, whereas I own a console primarily for one reason: gaming (and no, that wouldn't change if I owned a different system--I can't do word processing, use spreadsheets and video edit on a PS3).
Comparing the prices of one versus the other is comparing apples and oranges. Games themselves, sure, but there are too many variables in computer ownership for a direct comparison to work at all.
My consoles and the fates they suffered:
Atari 7800 (Sold), Intellivision (Thrown out), Gameboy (Lost), Super Nintendo (Stolen), Super Nintendo (2nd copy) (Thrown out by mother), Nintendo 64 (Still own), Super Nintendo (3rd copy) (Still own), Wii (Sold)
A more detailed history appears on my profile.
