They might be however the market is still undeniably small compared to its supposed console competitors. They only appeal to a very small amount of people, hence niche. 

This is concerning high end GPUs by the way, not pc gaming in general.

Movies are not games... You clearly have not played a multiplayer game with onlive, gamestreaming isnot a solution.

Yes, that is my personal preference, I made it clear in my first post, and its general knowlendge that MMO is one of the most popular type of genra on PC. My other point is that consoles are getting what PC always had too. MMOs.

It's just matter of a wrong perception: PC gaming audience is growing, but PC overall market, including home and office PCs not used for gaming, isn't growing, because except for gaming and high-end graphics and scientific uses, even low-end PCs reached performances high enough to last a long time before needing a replacement. And also for gaming, often upgrading a few components that may have become a bottleneck, is enough for most gamers, except power and graphics whores.

Movies are not games for the second time, there will be input lagg, you don't control movies... And you really think they will sell PC games also by then? Is onlive a huge succes? No. You can't say anything about what will happen in 10 - 15 years.

What exactly qualifies as a AAA budget?  And I would imagine you would need quite the budget to push the boundaries on PC.  Making video games are not cheap, and if you make games that only work on higher end PC tech, the budget will be even more strict as the base of users that would buy the game is considerably lower than the number of PC gamers.

This is the reason why I don't believe console gaming is holding back PC graphics as much as people think it is.

I don't know, the OP thought that you need expensive AAA games to push graphics.

The needed budget gets lower when you don't have to worry about hardware limitations.

Maybe it's a too extreme example (and it's not pushing boundaries, lol), but "The Light" was made by one guy with the Unity Engine.

http://abload.de/img/svet2013-04-1818-59-5pzaa3.png

http://abload.de/img/svet2013-04-1818-59-0h9x3t.png

well the pc market as a whole is shrinking, it will never go away but it probably peaked

With most of your points you try to say that you think less AAA games which release on console will also come to PC? Right now it looks like exactly the opposite, that more and more console AAA games will also release on PC and the similar architecture will only help. 

Sure, people on PC pay less for games but pretty much every sale is a digital copy so that they don't need to sell the game for the same price. Developers sell their games much cheaper on PC because they can still earn decent money with it and when the console market will be almost only digital, you will get deals on consoles also much earlier so that the price discrepancy will be only as big as long as  retail is still king for console games.

And as long as these games will still come to PC and as long as modders will still mod the heck out of some games, PC gaming enthusiasts will still invest in gaming PCs.  

You don't NEED expensive AAA games to push graphics, depending on how much that actually implies.  Money often gets poured into a variety of other things besides resources for graphics, but they still have a lot of resources used up for making great looking games.  

Also the needed budget doesn't necessarily get lower when you don't worry about hardware limitations.  The budget would most likely stay the same, or fluctuate depending on how much they think they could sell and what their profit margins are expected to be.  It's really all about the market and hardware limitations will still exist given that if you want to aim for the largest installed base, you have to use the statistics for what kinds of specs most users have.