I understand your argument but The Number of PCs capable of playing Video games is way bigger than the number of consoles. That said the number also includes office PC's that will never be used for gaming or Grand Pa's new dell PC that will never run any games etc.... You are still making a valid point, more people play games on consoles than on PC and it influences publishing etc.
Please try not to use the 1992 argument about having to upgrade your PC every year or 2 to play recent games. My PC is 3 year old & I played Crysis at 1920x1200 all on very high shadows on medium. Anyone who spends 1000$ a year on his PC to game needs to learn to read reviews before buying hardware. The max anyone should spend on upgrades is 500$ every 3 or 4 years. That is what I've been doing since the first 3DFX cards came out and the video card craze began. Buy smart & sell at the right time to pay for next upgrade.
The idea of going back to the days complex PC games with ugly graphics will not work at least not in a capitalist environment. I wish we could have the complexity & the graphics. The bottom line $$ is the most important thing, this means that the PC exclusive titles are going to be a thing of the past soon. Console gaming is heavily influenced by PC gaming & we are already starting to see the effects. There was a time when games like Oblivion would not have done well on consoles ...same with Bioshock. these 2 titles may not have the complexity of past PC games but way more than your average console title. It's really hard for any Dev. to justify making complexe games when console sales are booming because the games are simpler.