IMO Console development is making problems for itself, and will end up with all the problems that PC's have after a few more years.
When consoles first came on the scene, they were great, you bought your cartridge (or whatever) plugged it in, and the game was instantly playable. Perfect.
But PC gaming got more and more complex, which the PC gamers could handle becuase they knew a thing or two and could handle installing a game, changing display settings and what-not.
So as a result console gaming has followed the same road, Hard drives and internet connections have wiped out the 'instant fun' of the console. Now you have to wait while the game installs itself, then downloads an update for the game, etc.
These are things which PC games have done for ages but if you asked a PC Gamer what thing most wrong about PC Gaming, it is the fact that developers release a title with the expectation of fixing any problems in later patches (as opposed to better in house testing). So what do the console desingers do? They introduce the 'feature' of download-able updates to the games on their platform, making console game releases just as buggy and problematic as PC gaming can be.
The days of buying a console game and playing it straight out of the box are long gone. And if consoles introduce mouse and keyboard gameplay then again they're going to be in trouble. Suddenly a two tier online gaming community would develop. Those on M+KB and those on pads. And if they introduced PC and console online compatitibility then the same would happen again, I can see "oi! PC boy **** off, you move to fast" coming out of the headsets of 14 year old console gamers already.
The Wii has proven that instantly playerable games are what console gamers want, games that they can mess about in their living rooms playing and graphics dont matter.
So leave the rest to the PC, otherwise in trying to compete, Sony and Microsoft will just be plagued with the same problems that PC's have now and end up uncompetitive. (who would want a PC box that gets new hardware every 6 years when they could buy a PC and update it when they please?)