Lovely thread, too bad I'm 3 months late into this.
1) Game-ability - Console FTW!
Consoles shine over PC's if you are a hardcore gamer and nothing else. You need hassle free hardware, and games you can just plonk into it and expect them to work. But these kind of gamers are usually the filthy rich of the extremely hardcore ones, and many often buy different consoles all together (X360 and PS3) to be able to play the complete set of games. On a VFM basis, consoles tend to loose out if you intend to buy lots and lots of games, but they give you an experience of the way the game is meant to be played. Oh and I never mentioned the Wii because its in a category of its own. Its best left to family gatherings to entertain middle aged aunties and their pesky little kids.
2) Value For Money - PC FTW!
This is often stated as THE point when it comes to buying PCs for gaming, but from what I've gathered, PCs are NOT VFM at all if you buy them for exclusively gaming and nothing else (read: give them the console treatment). I know people who do everything computational with their office laptops and have decided to buy a PC for only gaming. This sort of a situation, they need to shell out 70-80 grands for a nice setup including a huge TV for use as a monitor.
But I bet 90% of people do not fall in the above category. We buy PCs for not just gaming but for a lot of other things as well. Even when a PC is too old to be able to play any games, its still usable for office work and other stuff. Many people use PCs for other non-gaming power computing tasks, like multimedia encoding or graphical design. A brand new gaming rig can easily last for 5-7 years this way with small incremental hardware upgrades (maybe RAID0 HDD setup or extra and/or faster memory and a cooler to OC). And more often than not, people buy a TV for use as a TV as well. You needn't add its cost to the gaming rig and even if you do, it doesn't hurt that much in the long run as its got a rather excellent life.
Finally the price of games. Just go to flipkart or letsbuy. You'll see plenty of games available for under 1k and many even under Rs. 500. Agreed that some are older titles but at the end of the day what matters is how awesome the game plays. Graphics are not the only thing. At such low prices with such awesome games and as many people said, the keyboard macro capability, VFM is maximum for PCs even if you buy games. And there are so many trials available for games. Good enough to provide single friday night entertainment.
3) For the Vendors - Consoles FTW!
Finally comes the vendor factor. Its kinda obvious that vendors find consoles highly favourable. Lot higher profit margins from the games. And very hard to pirate, and pirating blocks out online gaming which is where most console games are focussed on in the first place. Most gaming hardware is actually sold at a highly subsidised rate. Often its 20-30% below the manufacturing cost. This is because the cost is swiftly recovered through sales of games.
In comparison, despite there being a lot many PC gamers compared to console gamers, its the worst investment financially. Majority of PC gamers don't buy the games. This ends up in loss making figures for the industry because those who do pay much less compared to their console gaming peers. If everyone paid for games, PC gaming industry would've overtaken console gaming industry in terms of profitability due to numbers (less margin lot more sales). But today, consoles stand to rule.
The end effect of all this is that Vendors have started pushing out more and more console exclusive titles. But at the end of the day, the desperate gamer who can afford it gets any and every hardware he needs to run his dream game. The one who cannot afford it either finds *another means* or is doomed and needs a more affordable hobby.
(for eg, i started BF3 on PC, shifted midway to X360 due to a glitch on PC version, finally got the solution to it, but still continued to play on the X360, finally finishing it on the console, and now due to play 'karkand' expansion pack on the PC that i got for free with the DVD, but only after re-playing from where i had left it on the PC to shift to the console. all this while, am, as always, supremely confused as to among the hopelessly long list of old and new games that are pending to be touched, which title to start with next, and on what platform - the PS3, the X360, or the PC ?! wow ! what a mess ! 
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