No. Being able to sell your games to a constant userbase of 100s of millions of devices without the need to "start over" is far more desirable. Sony is probably kicking themselves that they can't sell large amounts of their back catalog to new users on their new devices... (at least not yet) They would be extremely happy to not have to build up a new userbase every generation... the reason why they did was because it was necessary to push the hardware envelope forward.Because performance is still a hugely limiting factor and internet is absolutely horrendous in one of the largest video game markets(USA). As long as those remain true there will always be a need for new consoles. Console hardware does make money, just not in the first year of production. PS3 situation is never coming back. What you propose is less profitable for console manufacturers and results in a worse experience for the user.
I never said Sony and MS would stop putting out a console-like box... They'll still have tons of their own devices out there that they can sell for a profit..
What performance are you even talking about? Small formfactor PCs can be far more powerful than consoles. A company like Sony or MS putting a pre-made SFF PC out there in place of their proprietary console will still get a massive discount on hardware from vendors they partner with..
As a result of all of it... I think the user experience on PC will improve as the market adopts to that change. Look at the work Valve is doing with Steam Deck. As well as those other handheld PC devices coming out. Of course there will be issues, but if you actually had the entire market working towards that goal, the overall user experience will improve rapidly from where it is on PC today.