Hmm... You make some interesting points. A pretty non-biased post, good job (in his opinion, the PS3 is the best console so shut the fuck up about it).
I disagree that this generation is the worst though. It's probably the best. I believe Zucas said a while back that people are buying games more than ever despite the economy. Something is attracting people to buying these games/consoles, and it can't be because they suck. It's because they offer experiences we've never seen before. Good ones.
Technically speaking, for the second generation we have three online-capable consoles, but this is the first time all of them get real support. I don't consider the GameCube an online console because only the Phantasy Star Online games made use of it (and it was a multiplatform game to boot). Xbox Live is getting a makeover soon, PlayStation Network will see the launch of home (someday), and WiiWare... Well, it's there, and people use it no less.
Another good thing is the market of downloadable content. Yes it started last gen, but this one makes use of it in other ways besides just extra features for certain games. You can download videos. You can download pictures and themes. You can download demos of future games. And in some cases, you can download full games (Warhawk, Gran Turismo 5: Prologue). Old games are coming back too. XBL Arcade, PSN, and Virtual Console are full of them. This is a great feature. Perhaps you once played Super Mario Bros. on your NES, but maybe you sold or lost it. Now you can play it again. Homebrew development has a chance to become a market of its own thanks to this.
We are also seeing actual competition too. You don't see all the big sellers on just one console now. All three have games that can get to the top of the charts. We're also seeing less exclusive games, which is good for developers but maybe not so much for consumers, as they have to decide which console to buy a game for if they have more than one.
Last generation was horrible from a competition standpoint. The Xbox truly offered the most. It had the most power and included a hard drive. It also was the best in terms of online functionality with Xbox Live. Yet despite all this, it didn't win. Why? It didn't have the support, nor did the GameCube. Nintendo killed itself with the cartridges on the Nintendo 64, and did so even more by literally doing nothing with the GC's online functionality themselves (only Sega with Phantasy Star Online took advantage). Third-party developers weren't sure if they could make a profit off of it, which is why most games worth owning for GC come from Ninty themselves and why it sold the least. Microsoft was the newcomer, and since they were going up against two established companies they were doomed before they even started. The Xbox was expensive to make, and they lost some 2 billion dollars at the end of it all. Thanks to its hardware and online it got great third-party support. But in 2005 it became clear MS was focusing on the 360 and the Xbox vanished. The PlayStation 2 as a standalone console did nothing the Xbox and GameCube couldn't (besides EyeToy). Yet it dominated from the start thanks to the PlayStation brand name alone. Sony's first console did so well and was so profitable that most game developers didn't want to jump ship and support Ninty or MS. Sony raked in the cash because of this. Back then the brand name guaranteed them selling the most consoles and getting the best games.