I wish some company would merge them. Heck, the Xbox is a PC pretty much, but (forgive me if I'm incorrect, not all that informed about current consoles) you still just have the gamepad controller or steering wheel, whatever direct input device for the game, right? Half my fun in online gaming is telling someone "hey, great shot" and bsing while I'm dead in MOH. I'm a social gamer I guess.
Anyway, back to the merge....for me to get excited about a console, this would be my ideal.
Got your console. It's in it's box, looks nice, doesn't take up a lot of space, general console stuff.
Built in TV-out. Basic console stuff.
Optional model or addon part to allow VGA output from the unit. Using same video hardware, just offering the VGA out.
USB keyboard/mouse connections in addition to regular ports for gamepad.
Works as a regular standalone with a TV. Basic console stuff.
Works in your computer room through a KVM. Time to game, just switch and you're there at your 19" Trinitron, got your familiar mouse and all the keys of the keyboard for games that can benefit from them. Other games you use the gamepad. Of course you wouldn't get the same FPS and resolution out of current console video as our Radeons and Geforces in the PCs...but I said current. Probably most controversial part of this entire post, but I'd rather have solid 60fps in a pretested configuration than 200fps in parts of one game and then have them drop to 30 because one map has textures or detail that doesn't fit with the combo of cpu/ram/video I picked.
When you're done gaming, switch back to your 1ghz PC you're still keeping around since you haven't had cause to upgrade since you quit buying hardware for games.
Now for the real merge....built in NIC (no big deal) for online play and for interacting with the computer. gplracer started this subject off talking about some racing sims I also run. Lot of the guys I race with aren't geeky computer types, they're just regular guys with lives and wives and like to race on the weekend and would flock to a console type device if it would eliminate the hassle of tweaking a computer for gaming. BUT without the ability to save replays they and I wouldn't switch. That's a must. Gotta be able to not only save one, but snip out pieces and have them on the computer where you can send them to others. That's one reason for having the computer running even though you're not gaming on it - just using it as a live storage device. Of course the games would run when the console is in stand alone mode too, just losing that ability.
That's one reason. Next is even more fun. In addition to being a write-storage device, you can run games off the PC's HD. Yup, that's right, downloadable demos for your console. Of course that might encourage people to try piracy, but like others have pointed out, consoles are aready warezed, the upside would still be worth it.
Mods. Can you download new maps to play on your PS2? Look at shadware's example. Now you've got the same possibilities for your console as you do for your PC. Lose this option when you go to stand alone console mode...unless the console would work off say an external USB HD in place of a full computer standing there. I'd rather just have the console networked to the computer, but that's me.
Of course if the unit has an internal drive a lot of these options are available in stand alone form too, just have to transfer saved files to the PC later. Some of this stuff is probably reality already with the Xbox, it does have a HD right? Don't know what the HD is used for, started off saying I'm no expert on current stuff. Just this vision is about where they'd need to be for me to make the jump. Lot of different options as to how to do it, just kinda rambling off some thoughts.