Well... as a PC gamer I have been seeing the limitations of the consoles for a few years now.. I've been seeing those limitations bleeding into the PC game market. Graphically consoles are keeping up, OK this is mostly due the the fact that multi-platform games are developed pretty much for the weakest platform and so pretty much look the same on each...I'm therefore always happy to read interviews where developers are quoted as saying they haven't reached the limits of what the Xbox 360 and the PlayStation 3 can do. I'm only just beginning to see how consoles are falling behind in the hardware department,
but within that you have to realise the a game on the xbox is hyper optimised and they have spent massive resources doing that and have had to make massive design compromises to ensure that the graphics are viable... and on the other hand the PC is only using a tiny fraction of its potential, if even half of the effort in optimisation went into the PC version of games then we would be seeing double or triple the graphical fidelity that we are currently being served up.
New consoles please, now.
As for modular consoles? that seems to miss the point to me, and anyway, the xbox360 has lasted how long with fixed hardware?... so long as they aim high enough spec wise for the new xbox there is no reason it shouldn't last just as long or longer. Besides, whats the difference between buying a new graphics card for your xbox and just buying the next xbox if you see what I mean... so long as you keep them backwards compatible then you could just keep on releasing a new xbox every 3 years if you really feel that upgrades are that important.