Depends on the kind of game you play. I'm not much of a FPS player, I prefer RTS and the consoles RTS games pretty much all suck. I'm not hung up on graphics, though nice graphics are always a plus. The PC games can be a lot deeper however, and gameplay with a keyboard is just better.
On the other hand, for "social" games. Sports games while your hanging out with buddies and drinking a few beers, consoles are great.
I don't see them as either or, but I don't like the console market damaging the pc market.