Ive always felt that consoles are. But i would say a console pc hybrid. As the others said some game work better with controllers some better with mouse and keyboard. The one thing where Consoles have an edge is there is no installing (unless ur stupid enough to buy a ps3 (JK!)) and no need for the constant upgrading or driver issues. If you could make a console that works with a keyboard and mouse aswell as controller and didn't have this installing or DRM issues then i would have to agree with Mr Carmach.
Personally I got tired of coughing up thousands for a PC upgrade every few months, and once I started working I had a lot less time to spend fiddling with my rig.
For me the console route makes a lot more sense as it's cheaper, requires less maintenance and provides the perfect media centre features for my needs.
PC will remain my machine of choice for the forseeable future as I ENJOY fiddling
as well as the versatility that the PC provides [painting, 3D graphics and animation, making muzak, etc] I don't usually spend tremendous amounts of cash on components regularly [maybe R10 000 once every 3-5 years]
and don't have a problem with the idea of toning down graphical detail to make a game work better on my hardware.
If I did buy a HD console, ot would probably be second hand, but from a trustworthy source and it would connect to my PC LCD. Buying an HDTV isn't an option for me.
I wouldnt invest in game development if you look at things over the years it is clear that not every game in development gets released and sometimes companies spend millions on developing a game and it still doesnt get released (Duke forever anyone ?) ! look at half life for the dreamcast (a successful title on the pc platform), the game was 100% complete and then the developers aka Valve decided to cancel it (hundreds of thousands spent on development where lost) so thats why i'll stick to playing games than investing in them