Yes, but PS5/Series X can do 4K and they go for like $399. Heck, I would not recommend it but you could even get a series s for $299 and game at 1080p which is much less than a $700 rig. At the end of the day, most people prefer convenience over performance and this is why console gaming is bigger than PC.
I think if you care about frame rate/ performance getting a PC makes sense but most people don't care about gaming with a high FPS/max settings.
I guess it depends on what you want. Being able to play city skylines 2, songs of syx, manor lords, enshrouded, against the storm, surviving mars, rimworld, and all the other survival, strategy, and rougelikes that aren't on console is worth it.
Plus all the mods for existing games, or older games. Example- Theif 1 and 2 have 100s of user made missions, that are free, and high quality, some have done a full on sequel in the engine. There is even a game made using one of the idtech engines that has nothing but fan made games and levels. You just don't get this stuff on consoles.
Doom, Qauke2, rtx , experimental stuff, early access, indie games without a premium price.
Then there is over 4+ decades of backwards compatibly, and console emulation. Can I play Pools of Radiance, Might and Magic 6, Wizardry 8, and Heroes of Might and Magic 3 on a console, nope. The same system I can play any ps2/game cube, ps1 snes, nes, genesis game etc... upscaled and with customized controls. Can't do that with a console.
Plus all the other benefits that come with a pc.
I own all the current consoles, but damn, pc is king for what you can play and do. If i didn't work at one for 8 hours a day I would be on it more, thankfully in house streaming to a tv or tablet is easy.
I really don't think pc is the performance king as what exclusive games on pc are pushing graphics? We used to have games like Quake, Crysis, Witcher, Stalker that all pushed graphics, now only AAA pc exclusives are really none that I can think of. To me, for graphics, yeah you are right a console is better and cheaper for that and they actually get AAA games outside of dumbass gaas made for them (for now at least).