R8V9F5A2: I'm a 50% PC gamer and 50% console gamer (PS2, PS3, XBox, Xbox360).
The only games I play on PC are older PC games and indie games, not modern triple-A games.
I prefer to play triple-A games on my console and not on my PC, for a number of reasons:
1) the PC port is usually much less stable than the console version, stability is more important to me than graphics
2) I can play virtually every console game offline, no "permission" needed
3) I can spend more money on games as opposed to expensive upgrades for my PC
4) no background programs that interfere with the game = less messy initiation
You can look at it from another perspective as well: the only games that are unique to PC these days are older PC games, complex strategy games and MMOs. Almost everything else can be played on console as well, as indie games and MMO-type games are increasingly more common on console. In this respect consoles are just as relevant as the PC, unless you are after a very specific game or genre...however the same can be argued from a console gamer's perspective, as some games are unique to consoles.
In general, as long as consoles offer easier access to games than the PC they will always be relevant.
1) You're right. Except when we're talking about stability in framerate. :P
2) Mostly true.
3) Upgrades do not need to be frequent. PC games tend to have more sales and deeper discounts. (from what I've seen) So it balances out in a way.
4) Yes.