You could say we are \puts on sunglasses/...the secsperts.
But, to answer your question, I think it only makes sense for the latest technology to be utilised and to push the envelope for graphics and physics and whatnot. I wouldn't think Nvidia and AMD would be too pleased if they didn't have the most cutting edge game engines to show off their shiny new graphics cards.
It's the closed environment of the consoles really that have always been their main strength, and why we get the likes of Halo 4 that, (and I might not be entirely correct here) probably couldn't be possible on a PC of the same spec.

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