This is all personal opinion... starting now:
Yes, unfortunately consoles do control the market. From the viewpoint of a gamer (not a developer) I'd love to never see another console again actually, but I know that won't happen. In comparison to computer gaming, I hate console gaming. The games are just not usually quality in comparison. They may be awesome the first few months they come out, but after that, it's all blah blah, same old. Technology starts to look lacking. The controls are difficult to master with those little tiny analog sticks. I am fairly decent at shooters on my PC, but slap me in front of Halo on the Xbox / 360 I look like a total noob. That may change if I played them more, but it's still very difficult, sniping especially. Heh, the rounds that didn't require me to have dead on aim, I owned at (those energy sword only matches). My friend was rather surprised after he saw me being utterly decimated at the sniping only deathmatch rounds previous to that.
Any console I've ever had after the age of 10, has entertained me for the length of beating each game once. Yes, sure I'd once in awhile go back and play the games again, maybe even play through them again. But PC games, I can just keep coming back to. They hold my attention so much longer. The controls are more agreeable, the graphics are sharper, cleaner, and crisper (comapared with console games from similar timeframes). For instance, I bought my GameCube and a few games. Aside from Metroid Prime 1&2, and Rogue Sqadron (the first one on the GC) I have never returned to beat any games again. They just don't have any replay value to me. Everything feels so limited. Serious Sam 2 was destroyed for PC gamers because it was designed for consoles as well. There were invisible walls everywhere, the graphics, while good, were completely cartoonified. The physics were good, but for some reason, there was barely any ragdoll.
It's a shame RE4 ported to PC was so bad. There was no reason for it to be. It could have been far better. The controls you outlined sounded horrible. They could have integrated the mouse and it would make a world of difference. I wouldn't even think about buying that game if I tried a demo with controls like that.
Anyhow, that's MY view on the evil's of consoles from a gaming aspect.
Developing aspect, I'd be all for it. It sounds wonderful. Everything being the same and all. I can understand why consoles do so well. No one has the fuss of upgrading every 6 months. You just pop the game in and play. For those types of people, that's great, but to me PC gaming just has an edge for being all around better, especially as the "next-gen" consoles get older.
Sometimes the only way over a wall is to pile up enough bodies to climb over - Dave W.