Can't blame them, and I respect the honesty.
WOW, Blizzard, and Steam would prove to the world there is plenty of $$ to get at on the PC - if you know what the hell you're doing and can figure out the PC market.
I think even Microsoft might have it figured things out on the PC out FINALLY, given what they are trying to do w/ X360, Win 7 PC's, and Win 7 Mobile integration for Cloud saved games compatible w/ each other - and probably why the rumors of Halo: Reach PC and Fable 3 are popping up. I mean, why the hell not? G4WL and XBLive are TIED together already - it's the obvious next step to go for.
Also, w/ what said above - you know, I wouldn't be surprised M$ eventually bring one SKU out there down the line, supporting out the box for some games X360 and PC in the same box - especially since Steam's on the Mac/Windows PC "SteamPlay" kick right now. For M$ to punch Steam in the face, they need to really tackle part of the Windows PC market, too - especially since Steam's also going after the Mac market.
I don't think shipping shit-loads of copies of games to retail's gonna be the answer for the PC market anymore. No, I think shipped a limited supply is the answer there. Also, I think the answer here is digital - G4WL, Steam, GamersGate, GOG, D2D, etc etc. Epic should look at this - there's money to be made in this market and G4WL GOD and Steam might be a place for them to look and see there's money to be made here. I mean, hell - remember when UT3: Black sold like crazy on Steam?