Have you seen the steam sales, and the humble bundles? Plus you don't HAVE to upgrade, if you don't your rig will never get any more powerful, but the consoles don't get more powerful over time so it's a pretty bad argument in the pc vs console wars.
This is correct. Pc gaming is on the rise, mostly due to the public double suicide that these consoles are. For instance, steam has beaten xbox live in active users )http://www.thinkdigit.com/Gaming/Steam-beats-Xbox-Live-hits-65-million_18290.html). Also steam is free.