Its blurring only because devs have shifted their focus from PC to console. Its hard to get higher quality material when the original's bar is set pretty low.
With the news of lower resolutions in new consoles, it is even more apparent that all those talks about "powerful machine" was a blatant lie.
AMD has introduced Mantle API technology in some of its cards, which will (in the future) be able to communicate with programs directly. This was one of the hurdle that PC had, in squeezing out performance, but if this (or similar tech) becomes more popular in the future, the performance gap will widen even more.
No doubt that many people have moved to, or newly entered into, consoles for gaming. Being able to play games at a push of button is very appealing to many people, and being able to be guaranteed a certain level of graphics is VERY appealing. But in the end, its just platform war. PS Xbox, and PC are all just platform. Devs have limited time and resources to focus their development, and since console is easier to code for (albeit harder to port to others) they just choose to do that instead.
Maybe, in the future, where all computers are a size of small chip implanted on a brain, that is more powerful than a super computer built these days, there will be no console game either. Almost everyone will have this system built into their body as soon as they are born. This provides uniform architecture for devs, which they so desire to fulfill their laziness. But this also indicates that console gaming will end as well.
It is obvious that someday it will die out. But not any time soon.