PC games aren't dead, but they are being relegated to a niche market. Can you imagine playing WoW on a console? Same goes for strategy games. Civ 4 or Company of Heroes just doesn't work with an XBox 360 controller. And just ask Hylander what he thinks of sim racing games for the console. That opinion is shared by flight sim enthusiasts, too.
Of course, I can't really imagine playing a shooter on a console, but more and more that's where they're coming out (at least first, if not exclusively). Sports games rule on consoles, though.