No, I have seen this topic come up every time a new generation of console is released.
PC Gaming will always have a place for the hardcore, the ones who attend LAN Parties, build and/or mod their own PC, the ones who like to tweak every last bit of performance out of their machine. A PC can evolve over time and adjust and upgrade, whereas a console you are stuck with until the next generation comes out (and this debate comes up yet again).
I remember the same awe and amazement when the PS2 was released. Some of the comments were, "Did you see those amazing graphics!?", "I wish my PC games looked like that" etc.
Now when you look at a PS2 game vs. a PC game, the PC game can have a higher visual quality, run at higher resolutions, and play at a higher framerate. It is an ebb and flow of who is the leader. When the XBox 360 and PS3 hit the market they will indeed be at the top of their game (no pun intended). 6 months to a year down the road and mainstream PC's will be equal. 1-2 years and PC's will have once again surpassed and in 3-4 years new consoles will once again arrive completing the circle.
Will PC gaming be hurt? Maybe a little. Will it ever go away? Absolutely not.