PCs are a commoddity. They have been for over a decade, maybe longer. People want cheaper, smaller and they want to replace them more often. Very few PC users, except gamers, want to chase upgrades.
As a gamer and one who does a lot of side work for people on their home PC's and networks, I could not agree LESS!
People do not like replacing and/or upgrading. It's all a big headache to them. They're always complaining about how now they'll have to re-learn everything all over again. Every time MS comes out with a new OS or version of Office, many, many things are relocated and it is a big headache not just finding what folder an app has been relocated to, but the interface for it has changed (Defrag, anyone?).
As to gaming, I can't wait for consoles to be able to do simulation-style games. It's way cheaper than any PC as you can connect wireless to your LAN and get on the internet with a USB mouse and KB). Every game that comes out requires more powerful CPU/GPU combinations than the last iteration of the game, but will run on a 2005 XBOX 360. Go figure.