It really is kinda funny. Even with brand new games there is a significant difference in price between PC and console. For example, the excellent game Psychonaughts, which will be released in April, can be preordered right now. $50 for Xbox and PS2, $30 for the PC. I guess this is just because there's no PC manufacturer that gets a royalty on each copy of the game.
Consols definitely have their place, though, IMO. They provide a much more social experience than the PC. There's something to be said for being able to get a room full of buddies and play a videogame on a bigscreen TV. Plus, Nintendo doesn't release their games on PC. In fact, the game libraries for consoles absolutely dwarf the PC (I'm talking about brand new, major releases) - most publishers simply don't release their games for the PC anymore. Plus, a console that will play Halflife 2 well costs $150, while a PC that will play it well costs $2,000.
There are tradeoffs, for sure, but there is certainly room in my life for consoles and PCs. Hell, for 100 bucks you practically need an excuse not to own a Gamecube, if you ask me.