They don't punch their weight beyond what we can do with PC graphics. Hell no, you sound like this guy I was talking to about 2 years ago at a bar, the topic came to gaming somehow, and he thought the the PS3 had better graphics than computer games, and cited look at the sweat from Kobie Bryant's forehead. At that point I started ignoring him and went about why I sat at that specific part of the bar to talk to the girl to the left.
The landscape of creating games changed, as PC was the pinnacle in pushing graphics and games forward, as the Xbox and later PS3 came about, with the increase of piracy, PC games became a shell of themselves when it came to potential profits, so developers and publishers switched to consoles games as their primary focus. This is what you are seeing. And in the short term which ever IHV has console contracts do have some advantage, but usually the other IHV adapts within a generation and negates that advantage.
Everything comes down to the all might $