Console growth is considerable. Hand-held, including phones and phone-like devices, is growing even faster.
What's prevented consoles from fully conquering the desktop is a few key applications for which the PC is still a superior platform. One is ultra-high-performance graphics, especially when directed at enthusiasts, and the other is anything that requires a keyboard to be reasonably useful, e.g. strategy games and MMORPGs.
If the next generation consoles include a mouse and a wireless keyboard, the PC gaming market would implode in a matter of years.
Kids that have grown up with an XBox of PS3 aren't going to want to fiddle with drivers or find out how to patch their game using the "Downloader App" or endlessly wrestle with DRM. They won't bother to switch unless there's a very good reason, and every day there's fewer reasons.