Well I've always been a console gamer out of necessity, I had a computer from the stone age until i was like 14 so I could never play decent PC games. But objectively speaking I think console has the edge, here's why:
1. It's significantly cheaper (Xbox 360=$349 Wii=$249 Ps3=$499, high-end gaming PC=$1000+)
2. No installations (Not counting stupid ps3)
3. All the games are guaranteed to work, unlike PCs where you may encounter problems such as lack of memory or an inferior graphics card, rendering the game unplayable.
4. Consoles have an incredibly larger selection of unique games. While games for windows is bringing over some of the more popular xbox 360 titles, there's just way more console games out there to suite a variety of tastes, which is what developers want.
5. PC gaming has a serious hacker epidemic.
6. This last one may not apply to everyone, but it certainly applied to me for quite some time. If you only have one or two computers in the house, and you don't live alone, chances are someone (Parent, sibling, child, spouse, etc.) is going to have to use the computer, and it usually happens while your completely sucked into a good game, which is a real downer.
So, in closing, I'll say that since consoles have evolved to the incredible state they're in now, I say PC gaming is indeed past its time with the exception of the occasional good MMORPG or RTS.
Here are my rebutals to your points.
1. It maybe cheaper to buy a console that will last you about 5-6 years then you have to get a next generation for another $400-$700(my estimate due to the world economy). While if you get a PC it would be if anything a $1k-$infinite depending on what your budget is. While the PC will last you as long as you have the cash to upgrade whatever component you need which can vary for
$1-$700 and usually it really is a video card or maybe a mouse/keyboard.
2.Installations are sucky but you really can't do much about not installing a new DirectX/Flash/ect. version so you can watch online videos/games/any other thing to you hearts desire. As for operating systems and hardware most already come with drivers when you buy a PC/hardware so it really shouldn't be a problem especially since it really is just a read and click install.
3.As I said in point 2 hardware is easily replaceable especially memory since 1 gig of memory is around $25-$35 dollars and usually it comes bundled with another 1 gig which really is 2 gigs that should run any game ok.
4.Consoles do have an incredible selection of games of all genres but that also applies to PC games. Heck if you want a shooter take your choice of all of the incredible ones that are available. God games take Sim games for a spin. Heck even Final Fantasy has a PC port.
5.If your playing a game with hackers most likely you also will be using hacks or mods.
6.This point is really a situational reason and should have been ignored. I know the problems of being in a great online game on the PC but if it is something that family/friends could wait for then they should be patient while you finish the game. If that is not the case then you sir are SOL.