As long as we're talking about games here, consoles have been winning the battle for a few years now. Sure every now and then we get a truly remarkable PC game (HL2, GalCiv 2, Oblivion), but consoles just get a lot more love from publishers/developers, and the controller allows for games such as Ninja Gaiden, Viewtiful Joe, God of War, as well as any number of platform games and fighting games that could never work with a standard keyboard/mouse setup. There's also the fact that now with the 360 being out and the PS3 on the way, the hardware limitations apparent in the old systems are no longer apparent (at this time) and it will allow developers to work more freely in creating a great gaming experience.
And on a completely different, yet mostly similar subject, we have Nintendo. Nintendo continues to do what they've been doing for years - make fun games. They took a risk with the DS, and right now its flourishing in terms of sales, and has a great number of excellent games available for it, with even more coming out on a fairly regular basis. Now with their upcoming Revolution, they're taking a HUGE risk in that they will basically be alienating the standard user base, but in turn they are opening up a whole new world of accessability and innovation. Nintendo is the only company that still believes in making GAMING systems and not media centers with an emphasis on gaming (keep in mind Katarugi's insistant claim that the PS3 is NOT a gaming machine); hell, just look at the PSP! Hooray, I can buy movies in a tiny useless disc format and watch them on a system whose batteries will die out about 30 minutes after the movie ends, never mind the screen that has the worst response time I have ever seen for an LCD display and the anemic gaming library full of ports and remakes in which the most noteworthy games were released at launch (Wipeout, Lumines)... but I digress.
The fact of the matter is there is life in both the PC market and the console market, and though the PC gaming scene is moving much slower than console scene, it still has some killer titles coming to it (Spore, UT2k7, Quake Wars). If I had to choose between buying a PS2 and buying a $600 video card, I'd pick the PS2, but thats just me - the fact of the matter is you can still buy that PS2 and have enough left over to buy a mid-range video card that will still allow you to enjoy most games assuming you have the proper cpu and memory. If you really enjoy games, there is no reason to choose one over the other, and certainly no reason to blindly attatch yourself to PC gaming simply because they have the ability to look prettier, you demand keyboard/mouse control in everything, and/or you foolishly believe console games are "for kids."