I find the battles between console and computer most puzzling as well. The differences between the two are getting smaller and smaller. Consoles ceased being simply gaming platforms last generation. This generation has brought them closer to computers. Custom operating systems, hardware additions, online systems, and plenty of features besides just gaming show that the gap is getting closer. To me, the main difference seems to be the control scheme, and the fact that the consoles have much more fixed system specs than PCs.

While I'm not predicting the death of consoles (or rather, the consoles becoming simply another PC) in the future, but if it did happen, I would hardly be surprised.