A PC is something different and not really comparable to a console if all you’re interested in is a hassle-free, straightforward gaming experience. Economies of scale make it so that a PS5 is just plain better than any PC you could cook up for that price.
Plus, exclusives are a factor for console choice, sure, but I’d argue that the performance boost relative to PS4 models is worth the price. I can only speak for myself, obviously, but I’ve been really happy with my PS4 for these last four years.
I guess in a sense it does lead to competitors trying their best to compete and create better games than their contemporaries. In an ideal world, all games would be playable on all platforms, of course, but that’s just not realistic - either because of contracts or hardware limitations.
Or greed lol