/i wouldn't call AC a bust at all, was a great game.
WoW is an absolutely horrible game quality wise, but a staggering success. Quality means very little in the MMO market, mass market appeal is what counts- just as it is in every other entertainment industry.
MMOs can work fine on the consoles, I don't see the platforms trying to push them at all though honestly. People who play any MMO heavily tend to buy significantly less games then their non MMO playing counterparts(myself included, when not playing a MMO my gaming expenses increase enormously). Sony/MS make money off of people buying games, unless they are getting a cut of the sub fees it isn't going to be something they are going to help push too far.
As far as the quality of the players, XBoxLive may be extremely poor, but Barrens chat is far worse then anything I have ever seen on PSN, by a large amount.
The PC is the superior MMO machine, you can multi-box, check webpages, run a guild vent, communicate easily in game, remap controls as needed, customize the UI and the game can evolve with the computers to keep it running much longer than any single graphics generation.
Outside of running a Vent server, why wouldn't you be able to do any of that on a console? I guess if you discuss evolving it you may have a point, but the latest and greatest MMO technology which is probably Aion is using an engine that would have run on the original XBox if it had the current platforms RAM. From everything we have seen, the current gen should be able to push ToR at ~300FPS, it will be a while before they evolve past the point that of being able to run on the consoles. It isn't like we are talking anything remotely approaching Crysis here.
There are various other examples, but the biggest being that console games are developed at 720P native due to texture memory limitations
I have several games that run at 1080p, devs can make trade offs to get the game running at the rez they want. Given how simplistic every MMO on the market is, I don't think 1080p would be a problem.
Consoles would be superior to PCs for MMOs... market share wise.
That is what it all comes down to. Speaking for myself, I would rather play on the PC because unlike almost every other type of game, I am far more comfortable playing a MMO at a desk rather then on the couch.