I have gone for no.3 cos i own an Xbox and a Pc, and i must say i have more games for the Xbox than i do the Pc...
The Pc is better for FPS games though...
One thing i will say about Consoles is you haven't got to keep upgrading the graphics in them which is a real money saver...But you do pay more for the games over the Pc equivalant, so over time it's swings and roundabouts on that one...
And you don't have to worry about whether the latest game will run on an Xbox cos you know it will...
Doom3 for instance runs like a dog on anything less than a 6600gt with all the eye candy turned on for the Pc..
But the Xbox development team with Doom3's programmers have written the code so it is Optimised for the Xbox's Inferior (and a bit long in the tooth now) Geforce3 4200 TI graphics card...
And you see all the eye candy you need on the Xbox without any drop in performance...
As for whether Consoles have better graphics than Pc's thats a definite no...The Xbox has the more powerfull graphics card over the playstation, but it's still meagre over what a Pc offers in terms of performance..
So the Conclusion is General gaming without upgrade problems, ease of use for children and worrying about the next top title not playing.. goes to the Xbox...
Where'as the Pc is for the more Hardcare Gamer, willing to keep abreast with new technology, faster frame rates, and wanting a more realistic experience...
and paying slightly more for it in the long run..
That's my two penneth worth anyway...