Yeah but remember a sony PS2 or an Xbox costs less with 1 controller than a brand new 9800 videocard alone!
but the most important factor is that any quality textures on a console are degraded by the inability of the TV to display anything above 640x480 or maybe for a better tv at 800x600 and yes there are those who have HDTVs but the decent PC monitors display 1600x1200 and even higher on a 20+ inch monitor. Now if you change the resolution of the game to 640x480 at least now you are trying to be fair. Plus an xbox has 733mhz processor, no wonder. You go try and play Max Payne 2 on a 700mhz P3 with a geforce 3 with all setting at max and guess what will happen it will simply chop! That's why you cant have as high quality graphics in games on consoles since the hardware isnt as powerful in the first place, contributing to the fact that the output being a tv is much worse than the monitor's display quality.
but consoles have other appeal => playing multiplier with a bunch of friends in sports, fighting or even shooting games like goldeneye or halo right next to you and getting all pissed when you kill them making jokes .... that's something you will never recreate at a lan party, at least not to that extent. Thats why you get PC for games you can play by yourself and consoles for everything else. When was the last time you played a sports game with your buddies or a fighting game on a pc and had as much fun as a console? I personally cant compare the experience. Graphics arent everthing and are simply the externality of the experience, but the experience of videogaming must be judged as a whole, and that includes having FUN playing games too.