I agree the blockbuster model is bad for gaming, but not because of low quality but how it has driven up costs and put many good and talented studios out of business.
I don't think its necessarily the blockbuster model that has driven costs up, but rather the increasing complexity and time required to produce high-quality assets. And that complexity and time cuts across all platforms, PC and console, alike.
So while PC acolytes like to say that without consoles, graphics would be better (and there is no debate they could be better....for now), in practice, they probably wouldn't improve all that much. After all, basically all they really want is for devs to take advantage of DX11 and OpenGL 4 tech, but devs still wouldn't have because (until recently) the market saturation of that tech was relatively low.
Sadly for devs, the cost of making AAA quality titles is about to go through the roof.
Ultimately, I believe that consoles represent a forcing function on the industry as a whole. Big studios are starting to move towards next-gen development as we speak and the availability of popular, extremely powerful consoles simply speed and incentivize that movement.
Also, people who say that the next-gen consoles won't look as good top of the line gaming PCs right now are retarded. And wrong. You can't compare PC specs and console specs apples to apples, because graphics and "computational power" don't work that way. Plus all of the theorized specs for PS4 and 720 are bull shite anyway