I know that the PC version is 'better' and can be modded and stuff, but I'm simply not very much of a mod person. I like to play the game the way it's supposed to be played, with the cutting edge graphics. It'll run much faster on the Xbox (all the Xbox is is a computer modded heavily for gaming) and the screen will be bigger. Modded graphics svck, and I'm not a perv and modding to get a girl anime character with almost no clothing. (seriously, you all need to get over the anime fetish, Vampire knight is FAKE.) There is some good mods out there, but I usually don't endorse 3rd party content for games like this. Too many mods are crappy.
PC version:
+Mods, nuff said
+More open gaming world
+Recordable
+Easier utilization of the Bethesda community
-Slower FPS
-Glitchier with introduction of mods
-More of a hassle at times (funky mod glitches, downloading mods in general takes more time, possibly viruses)
-Lower graphics (no HDMI cable like on Xbox)
-Anime cultic possesed players just get on my nerves, almost a good enough reason to choose Xbox version alone (you'll always hear about touhou somehow on these games)
-The controller makes a big difference. I love playing with the controller and having in on vibrate and stuff, it really makes for a subtly better experience. (computer controllers just don't have the same feeling)
-Rarely able to play on a large LCD TV
[If you have a good enough supercomputer that can surpass the console speed-wise, I'd probs. go for the PC game. But there are still lots of negatives about both versions.]
So yes, a question can be posed about the PC version. The PC version requires a lot more blood, sweat, and money than a lot of us care to deal with. I have a decent computer but not quite decent enough for a game like Skyrim.
I'll give an example here, shall I?
I just built a PC for, at current prices, 1/3rd more than the base cost of a 360 - if I also wanted a decent sized hard drive to go with that, the 360 is suddenly much more expensive (Because seriously, I bought a 1TB drive that's of significantly higher quality for less than a 250GB 360 drive, who's only special feature is being endorsed by MS - it's nothing special.) Add in the cost of accessories, such as a wireless adapter, additional controllers (Not a TV - my monitor (in fact, both of them) were cheaper then a decent TV), and then add on the additional cost of games, and suddenly PC gaming is much cheaper.
My graphics card has a HDMI port, as does any released in the last 3 years, and cables are very cheap (To the point where worrying about them isn't worth it).
I have yet to test oblivion, as I've spent the day somewhat engrossed in Just Cause 2 - running at a significantly higher resolution (1680x1050, though the limiting factor here is my monitor, according to benchmarks it'd maintain performance up to 1920x1200 - a resolution consoles struggle to render anything at, never mind something like Crysis or JC2) than either of the consoles, at twice the framerate, with larger textures, more detailed models, better shaders, faster loading, as well as the ability to mod (easily, anyway, as apparently the 360 version is moddable, it just takes work). With said HDMI port I could plug my PC into any HMDI-compatible TV, and I have plenty of USB ports to plug in a wired 360 controller (The very same one you'd use in a 360. With every feature working) - if wireless is more your thing, a bluetooth adapter would be quite cheap and work out of the box.
So, for /less/ than the cost of a current generation console, you're getting an awful lot more. Bugs due to mods is /not/ a downside to playing on PC, in much the same way as being able to shoot yourself in the foot is not a downside to a gun. Yes, they can happen, but you have to choose to let them. You don't have to install any mod - if you don't like an anime style mod, you don't install it. If you do like Manly Things For Manly Men Such As Yourself, you can install that.
PC gaming is no longer more expensive than console gaming, and with the imminent release of Intel's Sandy Bridge CPU/GPU it's about to get a lot cheaper to "get into it" at about console levels of graphics (As in, 5 year old hardware trying to run modern things).
I honestly cannot fathom why anybody would choose console gaming based on price. Either they simply can't be arsed to do half an hour's research (Which, for any purchase over £100, you should be doing anyway) or they're running on assuptions that haven't held true for quite some time.