The 360 is a baby PC in many ways which is why it attracts so many PC ports. PC games are notorious for being poorly optimized except from powerhouse studios like Valve, CryTek and id. They know what they are doing. Most every other game just wastes computing resources all over the place, which is why you see no graphical superiority on 360 although the GPU spec should allow for it.
This comment and those similar to it makes me wonder what people mean by comparing the 360 to PCs. Maybe it's all just semantics, but this really bugs me. Other than the fact that I consider PC to be an acronym for "Personal Computer" which to me means Apple, Dell, IBM, HP, Sony, et al. systems that run linux, Windows, OSX, Solaris, et al... I'll accept that PC now-a-days stand for "Computer running Windows" but I'll use my preferred WinPC here.
I might be trying to read your mind, but are you saying that the 360 is similar to WinPCs on a hardware level or on a software level? On a hardware level, I would say even the PS3 is similar to a WinPC. I think the fact that Sony promotes its ability to run linuxPPC makes this clear. That's one level of comparison. If you look deeper, neither the PS3 nor 360 can be described as your typical WinPC. Most WinPCs are based on the x86 processor. Both the 360 and PS3 are based on PowerPC class CPUs.
In terms of software, I will agree that MS has done an amazing job making the 360 look like a Windows platform. Allowing developers to use x86 development tools (Visual Studio tools) and DirectX APIs for software development. I can't speak much of their professional development tools, but at least with the XNA Game Studio tools, you hardly realize you're deploying your code to a platform that's not binary compatible with your development work station. You are using a cross-compiler, and you hardly notice it, until you need to deploy your code to the 360.
That said, console software development means you start off with an optimized development plan. You no longer have to cater to all the different hardware combinations in the home computing universe. Don't have to worry about whether someone is using Intel vs. AMD vs. PPC -- don't have to deal with both OpenGL vs. DirectX, Nvidia vs. ATI. Keyboard/mouse vs. game controllers. It's much more streamlined. Of course, if you're a multi-platform developer, you still have those issues, compounded by the number of different platforms supported.