"Retail PC Market =/= Overall PC Market" <- This!
PC gaming certainly isn't dying.
I have been noticing that we keep getting shafted and get these horrid console ports lately. *cough* Black Ops *cough*
If consoles offered better hardware I'd certainly own one.
The only reason I would buy a console is to play with friends and not to worry about how many people in the server are using a wallhack. <- wallhacking has been rising rapidly through BFBC2
Pirating is a lame excuse to shaft PC players as the multi-player hardly ever works anyways so people end up buying the game.
As long as we have Blizzard and Steam PC gaming will stay along for a very long time and will continue to grow.