I also doubt that the consoles are maxed out. Have you seen some of the latest PS2 games? They look almost as good first gen PS3 games, due to the fact that developers have years of experience with the architecture.
Furthermore, even if Sony's platform was the most powerful from the beginning, it doesn't matter now because there is no way that it is as powerful as the next generation which is supposed to be out in 2011 (according to rumors). So, Sony would have to outsell Microsoft 3 to 1 for the next year a half just to have the same user base, at which time the new console from Microsoft will completely cannibalize the sales of the PS3, because it will be 6 times as powerful as the PS3 is now. Don't believe me? The PS2 had ~36 Mb of ram, the PS3 512 Mb, or 14 times as much. I'm not sure about the actual processing power, but I think it's fair to say that the PS3 will be extremely outdated by 2011, and that Sony had better have a grand-slam with the PS4. I hope they do, because healthy competition is good for us gamers.
@kami3k
Frankly, it doesn't matter to Nintendo if they sell software or not. They were the only company making money off of every console sold right from the start. You think the top execs give a crap about software attachment rate when they a generating a billion dollars in profit off console sales? Sony is STILL losing money on every PS3 sold. Granted, Nintendo is shooting itself in the foot for the next generation by not supporting 3rd parties and not having great games, but they ARE rolling in the dough. They don't care if 70% of gamers are 18-35, because older retired folks usually have deeper pockets then poor college boys, and those are the pockets they are picking. I agree that Sony and Microsoft have better games and better systems, but their business decisions have targeted their products at a much narrower (and poorer) demographic. That's just business. It has nothing to do with gaming.
@soldier37
Nintendo isn't just selling because it's cheap. The Xbox360 is now the cheapest console (Arcade at $199 vs Wii at $250), yet the Wii still is beating it. It's the target demographic that doesn't care about true gaming on a 52inch plasma that's buying it.