1.) Of course.
2.) A. Hmm... I would guess so...
B. No. (I knew this was the next question.)
3.) Yes...
4.) Between PS3 and 360? PS3.
5.) ---
6.) I would guess so...
7.) Depends if I think it should... if so, then of course.

Hm... that's a good explanation of it!

Why am I not intimidated?

I hear you, but i think in some instances its ok, for example the BS that Capcom has been doing with their fighting games of late. I can see why some might want SFxT to not do so well. For me its not malice, I like Capcom fighters, some people just want them to stop the crap they have been doing. and since money is the only language they understand, then flop away.

Sure, i can understand cases like that.

I think the reason people cheer for a particular console is fairly basic. The purchase and use of a console and collection of games is an investment of both money and time. Humans, being competitive by nature and loving the feeling of success, want to feel that they made the best investment.

For example, I spent thousands of dollars and hundreds upon hundreds of hours on my Xbox 360 and the games I have purchased for it. I don't want to feel like that was a bad choice and that people who opted to invest in a PS3 made a better choice than me.

1. Yes
2. A. Yes
2. B. If it helps the franchise gain more popularity (I fail to see how it wouldn't), then Yes
3. I guess, since it may lead to increased support in the future.
4. Doesn't matter.
5. I'd prefer if both had great sales.
6. No. Whether I enjoy my console or not is what matters. (For instance, I didn't exactly start crying or anything when I found out about the Gamecube's horrible sales.)
7. No. But it would probably annoy the hell outta me if one didn't.

Firstly, you are neutral, not taking any specific side. Therefore you have no business telling me what the mind of a real fan, someone who picks a side, thinks. You are out of your element in this thread and my sports analogy I might say fits the bill nicely. My line "Fans like in sports, identify with their team and get patriotic because their city/country helps define them as a person" I feel explains the mind of a fan quite well. 

You say sports has one team victorious and is dependant on the loser. Sounds like gaming industry to me. Having more then 2 teams is where the gaming industry differs but then again not so much: most gamers see this gen as a battle between the HD twins. 

You can be successful but sell less, make no mistake, but it is the overall objective to sell more that makes it a victory in the fans eyes, regardless if the "loser" is still considered a success in its own right. 

You just sound like a "soccer mom". The industry will go the way it does no matter what we say. Console wars is just throwing in some fan rivalry in the mix, as is custom in any competitive area. Anywhere else, you would be shunned for your "hippie neutrality". Gaming however Ill admit handles fans differently.