Now, whether the next console tier will actually allow that or not? I don't know. Investors seem to be catching wind to just how low-margin the games business is, and as a result seem to think social gaming is the way to go(if Zynga's large and horrible decline hasn't convinced you that they are wrong yet, give it time. It will.)- which means less marketing dollars justifying that new console, and thusly, less reason to push the desktop.
But we haven't stopped because there's no more need. Just, the market is in a bit of a wonky place right now. Console manufacturers would love to have a new one to sell, but developers are pushing back because to actually develop at the kind of fidelity required to go past where we are now, your average game's budget will quickly double or more, with few returns in terms of profits- those margins just keep getting thinner.