On the refresh of the new consoles, you've got it wrong... it's not early, in fact, it's right on time. Console refreshes happen every few years and this is the time it's expected to happen. The DIFFERENCE is that Sony and Microsoft are waiting a year or two longer than what is usually done before the release of their next-gen console to take over from where their current gen consoles have left off. They're, in fact, not phased at all by the release of Wii U which Nintendo did for their own reasons mostly stemming from the fact that Nintendo had tapped out Wii in terms of its own first and second party software and wanted a new hardware with new gadgets to play with. Nintendo does what Nintendo does mostly for themselves. Sony and Microsoft do what they need to do to compete with each other... they may announce their new consoles at E3 this year, but it's still going to be awhile before they're released.
I don't see the decline of the console industry simply because I know there's a lot of people who know nothing about how to troubleshoot when anything goes wrong on a PC. The stress of trying to figure out all the various big and small things that go wrong with PC gaming (which we all take for granted since, if we're here, we're all most likely used to all of those issues). My nephew, his friends and everyone he knows on his age level on the other hand? They're totally clueless when it comes to that kind of thing. All they REALLY want to do is insert game and start. Which is all a lot of people want to do. They're not concerned about the slight difference in frame-rate, the higher resolution or the anti-aliasing and little tweaks you can do to add performance.
As for console manufacturers trying to reel in the PC gamers? They're not concerned at all, they don't need to try to do anything to attract PC gamers at all because the market they have no is huge and profitable. In fact, they smart thing which they've done is try and go the other direction and attract people who don't generally play the video games that we all play. The so called "casual gamers" and "non-gamers"...
As for graphics... a lot of developers need to realise that trying to create photo-realistic visuals (or as close to that direction as possible) on every game they make is BORING. More games with interesting art styles please.