Of course PC games will not die - here's why
A PC can be used for other things - internet, WP, music, video
Consoles have still failed to make omnipresent internet/online use a reality.
Mice are better for so many types of games - I know this might seem like an academic point, but silly points like this always make the difference from a marketing point of view.
Look at the popularity of online games like World of Warcraft, HL2, Dawn of War, etc etc etc. Games that have communities, i.e. forums and chat - try doing that on a console (again, the fact that you CAN get a kb for most consoles is academic)
Its easier to pirate games on a PC - this was (an unintended) selling point for the Amiga supposedly...
Consoles life cycles are long, PCs can be upgraded much more regularly.
Console games are expensive, and development can be limited to a few software houses.
The list goes on....
