In my opinion there isn't really as much difference between PC and console gaming as people think. The main differences are imposed by the console manufacturers and game developers - it isn't about the capability of the machines any more.
For instance, there is no technical reason why a PC can't behave like a console. You can hook up to a big TV, plug in a 360 controller, sit in your comfy chair, and play the PC version of various console games. They could implement a Live style online service for PC with headsets and junk if they wanted. Heck, you could make PC games run from the disc without an install process if it seemed desirable enough - it would just be a bit slow. I don't see that there's anything a console can technically do that a PC can't, but the games and so on just aren't made and sold that way. DRM appears because the PC isn't a locked down system in the way the consoles are.
By the same token, some of the advantages of PC gaming could easily be implemented on the consoles. There's zero reason why the XBox 360 can't support USB mouse+keyboard in games - they just choose not to because they think everyone sits in a big comfy chair. My 360 is hooked up to my PC monitor, I like it that way.
The OP's view on PC gaming seems to be that there's too much freedom to tweak. The opposite tends to be my view of consoles - that there's not enough ability to do things how I want. Maybe not tweaking graphics settings, but the lack of mouse and the aging hardware. The 360 is getting old now.
I seriously think there's room in the market for some kind of middle ground between consoles and PC. Say, a new XBox 360 with higher clocked CPU, faster GPU that would run the same games, just at a higher resolution and/or more smoothly. Those tweaks could be set automatically instead of letting the user fiddle with them. Every couple of years a newer faster version of the console would appear, making all your existing games run faster without having to think about it. On the back of the game box you'd have "Requires XBox 2010 or greater. XBox 2012 recommended." New games could still run on older machines, just with the reduced resolution and detail - this is basically what we have now, just that the faster XBox doesn't exist.
I think it would be a better way forward than the complete all-change we get with new consoles now. The real benefit of PC gaming is constantly improving COMPATIBLE hardware - it's the fact that it's the bleeding edge of technology that keeps people interested. The XBox 360 is what, 5 years old? If it had been given a refresh or two with faster hardware, and you could plug in a mouse, I don't think there would be a console vs PC gaming argument. Our PCs would all just be laptops for Facebook by now.