you look at PC exclusives - STALKER or ARMA or the X games - and what are they doing that console games aren't doing? ARMA is touted as this masterpiece of PC gaming and proof that PC gaming isn't dead and one of the bullet point features for ARMA 3 is RAGDOLL PHYSICS, which console games have had for at least this entire generation. STALKER and X3 both have amazing AI but that's really the only thing they've got going for them that console games don't, because they're both ugly as sin without mods.
what did The Witcher 2 do that console games haven't done? apart from the story, of course, since console gamers are clearly http://www.joystiq.com/2011/06/02/the-witcher-2-casting-spells-on-xbox-360/. everything from the main menu to the act of rolling around was clearly designed with a gamepad in mind. it didn't even utilize DX11. it was a pretty game but all of that prettiness was what wasn't masked with tons of depth of field and bloom - which are mostly a console trick to hide [censored] LOD.
everybody going CONSOLES ARE HOLDING BACK GAMING seems to not really understand how incredibly important this generation has been to multi-platform developers. apart from economics or demographics or whatever, we're getting huge huge games like Red Dead Redemption or Skyrim running 100% on hardware from mid-2005 at the
latest, and doing so with totally adequate graphics. over the course of these last six years video game developers have MASTERED the art of getting the most out of hardware, and it's only going to improve.
right now the biggest limiting factor for games is the fact that the 360 still uses DVD and doesn't allow mandatory installation. this isn't HURR THE 360 svckS, this is simple fact - if Microsoft had gone with HD-DVD as its standard media and had never released a 360 without at least a 20GB hard drive we would probably still be having this discussion but it wouldn't be nearly as hostile.