It's a real shame the video game industry disagrees with you then, since the majority of profit and innovation comes from the consoles.
I can't even explain it. Things are just more fun on consoles. PC gaming is too damn expensive for me. I can barely run The Sims 2, so forget anything else I want to play on PC.
Microsoft has already integrated most of those benefits to PC gaming you spoke of into console gaming. Many, many XBox games have downloadable levels and content. Nintendo's planning on doing it with the DS.
My PC has given me an amazing video game experience exactly twice. Half-Life and Starcraft. My SNES alone has given me that many times over, nevermind my 10 other consoles.
Actually, the gaming industry agrees with me.
Most profitable game of all time ? Everquest.
Highest sales in their first month ? World of Warcraft. (I feel they would have beaten EQ already in that first if they hadn't purposely halted distro)
Played the most (in both hours and number of people playing at one time) ? Counterstrike.
Longest lasting continuous sales ? Starcraft.
The only reason consoles even still exist are that you can just plop it down and play the game, the learning curve is VERY shallow for consoles, and the IMMEDIATE cost is cheaper for a console.
What console gamers don't realise, is they are buying new consoles every year or two, while a PC can be upgraded for years before needing to be replaced. I know someone who plays Doom3 (known as the highest requirements for any game as of yet) on a P3 1GHz system. And Starcraft, which is still actively sold in stores will run on as low as a Pentium 133MHz system.
Once PCs become a part of EVERYONE'S lives, I see the console going the way of the dodo.
As it is, all TVs are now becoming Monitors... and with that, people will become less and less satisfied with passive television when they can more actively use it on things such as MediaCenter PCs, and Digital Cable content, which means they will already have a computer on their TV, and will get the same "Turn the game on and play" experience, making consoles obsolete.
When you say you can't even play the Sims 2 because PCs are too expensive... ever consider all the money you spend on all those consoles ? If you would have put that money into your PC it would be more than adequate.
I also don't know where you get the idea that "the majority of innovation comes from the consoles"... last I checked it was the other way around. I can think of only a single game that started on the console, then they made a PC version, but I can think of tons that did the opposite. Not to mention the fact that the latest technology in just about any graphics and games are being driven by the PC market, since a console takes so long to produce the hardware in it is comparatively obsolete by the time it is released, while the PC can simply be upgraded.
I'd be curious what 'innovation' you are speaking of. All the Dynamic Texture and Lighting engines were on the PC first. Harware rendering ? PC first. Cell shading ? PC. Networked gaming ? PC. Internet gaming ? PC.
How about Genres:
FPS ? PC
RTS ? PC
MUD ? PC
MMO ? PC