The human species evolved by copying one another. If something is deemed "cool"... it will dominate no matter how good it really is. Tablets and smart phones have long since been the "cool" thing to own and thus, it's no surprise that they have done what they've done. 

The real question is, will it wear off? I hope so but I don't expect it.

1.Poors kids. (not really, they just have more options)

2. Lol at the idea of toddlers aged 2-5 gaming on PC, how do they even sit at the desk!?

3. I'm surprised the amount of mobile gamers isn't higher. Even as someone who "hates" mobile gaming, I still occasionally use it to waste time, since I always have my phone on me and games are just a touch away.

4. Fall in console gaming likely related to transition between generations? People are abandoning their PS3s and 360s, but haven't necessarily upgraded to a new system. Thats the position I'm in anyway.

Nothing new. "iPhones" and "iPads" are the cool thing now. Adults uses a lot for work and waste time, while the little tikes can use to play.

I'll always have console gaming as my first choice, and physical copies of games over digital.

This thing right here is very curious, i see it everywhere on these news sites, ''PC(related) sales are on decline, year after year, oh so tragic'' yet... Parts mufacturers and specialized stores say that PC gaming is on the rise, new mmo's come out every year and haev healthy userbases, League of Legends just to name something keeps gaining more players every year, the e-sports scene keeps growing with audience, prize and participation records set every year, Steam reports record sales every year, I... I don't know guys... i think someone may be lying  :O

Edit: for real, one of the two sides is lying.

I think it will wear off to a degree.  Right now it is still new and cool and thus the pitiful quality of apps is kinda moot.  Think Atari era.  But once the "new and cool" sheen goes away the whole house of cards can very easily come crashing down (think 1980s console crash).  That which explodes in size due to being cool and desirable ultimately undermins itself with its own success, as the cool becomes the mundane with enough over exposure.  Just to be clear, the smartphone won't go away, they are mostly considered a necessity by many.  But the mobile games market?  I could see that crashing spectacularly.  And I don't think I'm the only one waiting for that.  There's a reason the big companies haven't all thrown their eggs in that basket. 

...The kids? Who do you think will be designing the games you'll be playing in a few years?

Feel sorry for your gaming in a few years, because Flappy Bird and Temple Run are the types of games that will inspire the devs of the future.

I don't really see it as a big deal.

I've said it before but it's like a guy sitting in the middle of a McDonalds or Burger King complaining that there's no steak on the menu and no wine list, no waiter.

Some people just want a damn hamburger and fries.

That's what tablets/phones are tapping into. A lot of people simply don't want to play complex, depth-based games on the road. For starters most don't have the time to sit down and play for 60-90 minute sessions when away from the house.

It's just that in the past, there was no alternative choice, if you wanted to play any type of video game on the go, you had to bring your Game Boy/DS/PSP with you, and I think for a big chunk of people that's just overkill for what they want.

I'm so glad I was born in 1990 and thus grew up playing NES, SNES, ps1/2, Xbox, PC, GB, DS,  etc. 

It's such a difference between playing a game on your phone. 

I'm a little confused at what you are getting at. I would think many  of current devs are ones that grew up with arcades and Atari and maybe even some NES, SNES and Genesis. The ones designing games in the immediate future, or the near future (5-10 years or so), I would think are the ones who grew up with the PS1-2, N64, GCN and PC.  The ones that have grown up in the thick of mobile gaming with stuff like Temple Run and Flappy Bird  I don't think will really be on the scene "in a few years" (if they're even going to make games).  I'm thinking more like 15+ years from now.