I thought I was comparing consoles to computers hooked up to TV's. I rechecked what I quoted, so yup.

But again, don't think consoles are going anywhere anytime soon - not 10 years definitely. Granted portables are outselling even the most popular consoles (particularly the DS and the iPhone/iPod Touch if you really must count that) but I have yet to meet anyone who had ONLY a portable and no other console to speak of.
Here's the thing, portables are HORRIBLE at social gaming - something that sells the Wii (remember all those ads of smiling families waving around their Wiimote). How many portable games do you play in groups? Pokemon? That was pretty much it.
And as powerful as portable gaming will get, console aren't going to be sitting stagnant while the devices play "catch up".
You'll see. Within 10 years a handheld will have the same power to deliver 1080p of highly detailed 3D, and you will have the option to play it on the portable's screen, or wirelessly transmit to your big screen TV so you can play HOWEVER YOU LIKE.
There comes a point where graphic detail reaches a maxium. The iphone screen for example, squeeze 300 dpi. You can't see pixels on it anymore. Now, the 3D horsepower in it still needs a lot of catching up, but we're talking about the future, not "right now".
There's always a "maximum" that engineers always say "oh yeah?!" to and proceed to blow past it. And it's not just graphics - it's raw processing power as well. More characters on screen with advanced AI and unlimited gameplay options. We've yet to come close to the ceiling of what's possible.
As to your other point, it's quite possible that the next generation portables are going to be dual-purpose workhorses by doubling as a console - but I can't imagine it wouldn't be a big detriment to the hardware. You can play it on the small screen or the big screen? Okay, how are game developers going to know how someone's going to play it? A portable screen and your living TV are HUGE differences. What you can see on the big screen will be minuscule on the other. Those were the big complaints about the TurboExpress and the Nomad. As SavannahLion said, consoles and portables are entirely different breeds.
Well, maybe they can make two versions of the game on one disc (or download, actually). But that just adds to production cost and time - something a company wouldn't be willing to do. Wouldn't they rather just sell you the same game twice for different hardware?

But I'll tell you what: If in ten years consoles are non-existent, I owe you a Coke.
(EDIT: Fixed code)