I'd have to say yes, they will eventually but probably not in a few years.
tv's and computer monitors, cutting edge ones of today the difference in quality tips in favour of the tv. Because they're new though right now they're extremely expensive but eventually everyone will have one as the line disappears between what is a TV and what is a computer monitor.
Graphically a console game can be as good as its pc equivalent, if you compare a game designed for equal hardware at release time the differences are few and far between, but if you're dead set on comparing games designed for faster evolving pc hardware against already old console hardware then its a moot point.
How much better could pc games look and perform and how much fairer would multiplayer competition be if all the systems where the same? Is this what you mean by more challenging multiplayer Sly Boots? Who can afford the better video card this month? A developer can be sure they get the most out of the components rather than having to waste time trimming features in an attempt to run on such a broad range. Personally I find the idea that Halo on the PC is superior looking than Halo on the Xbox laughable. They ripped a heap of custom shader, lighting and texture effects out of the PC version, it looks crap no matter how much you increase the polygon count or resolution.
As for the argument that certain games play better on a PC, well thats just a matter of time also. Strategy games are few and far between on consoles right now, but they're a popular genre. Through console design and game design changes they will become as good or better. Kingdom Under Fire: Crusaders is looking good I must say, and Dynasty warriors if a little strategy light, isn't so bad. Have a look how beautifully KOTOR handles turn based battles with a console controller.
As for sound superiority, well I know more people who have their entertainment units hooked up to digital surround sound (with their consoles) than bother to set up digital surround sound around their computer. Audio can be an extremely good immersion element to any game.
These are all just opinions though, realistically the main driving force for consoles becoming the most prominent domain for gaming is the lower piracy rate. Have you ever tried to pirate a gamecube game?
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