AAA was always console dominant. This "limiting the PCs" bullshit or "if consoles weren't around we'd had high end AAA titles ALL THE TIME" narrative is still strong after many years.
Yep, I mean if the market was worth pursuing then it would have been pursued... If it was that much better than console then people would flock to PC gaming but that just never really happened outside of enthusiast circles.
As it is we get one or two tent pole PC games every few years from someone like Crytek that's mostly showing off their engine as a glorified tech demo, everyone else targets where the real market is, which is the much more popular console platform and lower end PCs that are in much more abundance. PS4K basically is the high end PC option for console lovers, which I think could be pretty great. If it helps PSVR compete as well then all the better.