PC gaming will thrive again when Joe Average buys a new laptop (and let's face it, he WILL buy a laptop) and it already includes a decent graphics card to play current games. On the other hand, developers/publishers have to make sure that these games actually RUN on that hardware and don't require an expensive desktop graphics card.
Good example: Source Engine Games run great and look great on my 8600m GS based laptop (hardly cutting edge)
Bad example: Neverwinter Nights 2, Crysis: Run choppy even on lower settings and look ugly.
But even without cutting edge 3D graphics we have so much unused potential. I recently ran through my dusty games collection and found Baldur's Gate and Jagged Alliance 2. The visuals of those games are just great and don't require a 3D card. The PC has such a large back catalogue of great games which is not at all exploited. I mean do some advertising for those games and sell them digitally for 10 bucks. I could go on and on, so much potential left untapped...