I don't think the cries of "PC is dead, long live the console" have enough legitimacy to start lamenting the passing of PC gaming yet--or any legitimacy at all.
While the Xbox 360, PS3, and Wii have been very successful, there are still metric tonnes of new titles coming out for the PC all the time. While we tend to focus on major releases like Unreal Tournament 3 and Call of Duty: World At War, remember there are still scores of smaller releases like Peggle Nights, Penny Arcade: On the Rain-Slick Precipice of Darkness, and Sam and Max: Season 1. True, some PC titles will also see releases on other platforms, but that doesn't damage the legitimacy of the PC as a relevant platform for games.
I have a great time playing games on my consoles (Wii, Playstation 2, Dreamcast, Playstation), but certain genres of games (first-person shooters, real-time strategy, and massively multiplayer online) work better--for me at least--on PC than on consoles.