I have to admit that consoles are exceeding PCs in graphics, but this is because they focus on games. The X-Box, I believe, uses a 500 Mhz CPU, but it can outperform a 1.7Ghz CPU when running games because that's all it does. PCs have to run the base operating system too, and have a whole load of indirection and deadwood between the game and the hardware.
Consoles are definitely the future for games, but I'll not switch to them until PC games are well and truly dead. Of course, PC games will never die because there will always be a market for them.
Besides, PC games work on all PCs of high enough spec, provided you've got the right operating system. The compatibility issues occur in software, not hardware, so games producers don't have to focus on one type of PC, like they do with consoles. N64 games won't work on Playstations, but DOS games will work (usually) on Win95/NT operating systems. Not only that, but you can upgrade your PC to run the next generation of games and it will still run the old ones (normally). But if you have a SNES, and you want an N64 game, you have to buy a new console...
PCs rule. Pity they cost so damned much.