I'll be honest. I'm of two minds over this.
The slow convergence between console, TV, stereo and PC as been a-comin' for over a decade now. I seriously suspect that once Microsoft finally give in and produce a full version of IE and Office for their new XBox, the PC will start to wither away as a seperate entity for around 75% of the home market. It will still hold sway in schools and the office, and those who hold on to their old-style seperates will look like fusty old antiquarians.
We in the west have been arragant in looking down on Internet TV (and their console decendent). But in Asia, Internet via cable TV took off a decade before the PC did, and the humble moble 'phone made inroads where no landline had been before.
Even with this convergence, the PC still holds the edge when it comes to mods - the user base. As a rule, PC gamers are rather more likley to be the people to hack the game files, email bugs to the developers, create mods and generally demand more from their game, such as patches and support. Admittedly this is due to the serious difficulty in doing that to a console game, but I suspect that will hold true for some time to come. I'd also attribute this to the fact that the general age of a PC gamer is older than a console gamer, because it's only adults who can afford a good enough PC for modern gaming.
I see the benefit of this, but I see more worries...
The fact of console patching may encourage developers to cut beta testing even more, because they can 'allways release a patch'. But for some developers, that never comes. I think of fan patches like KillApps F2 patch (is that right?) and Team Gitza's content restore mod for KOTOR 2 - I seriously doubt these would have houseroom on a console. And I know they won't have those handy patches like No-CD, skip intro and game tools that most 'veteran' PC gamers use.
(Disclaimer: I do use No-CD patches, but as I still own the phyisical media and don't multi-install, I have not broken the EULA. It's just that when you have 50+ games installed, it stops my desk being filled with CD wallets)
Now, most of Morrowind's mods are out of character, god items, badly made or just plain stupid (Just like any other game). But a few of them are real nice - stuff like Better Clothes, Better Bodies etc really shows how you can tart up a creaking game engine. I know Better Bodies wouldn't make it on a console, because they had a nude version (a la Daggerfall) and I remember the 'topless' mod which caused a micro-storm over Oblivion. My fear is that the console maker will collaborate with the devlopers to create a mod 'pond' in which they charge £ even for the patches which we PC people regard as both free and a sign of a developer's goodwill to their fanbase.
Lastly, I fear that in the convergence, PC games will degrade into their console brethren, not the blossoming of consoles into a new era of gaming.