You can still offer competition even if all games were available on all consoles. You can buy MS developed games on your Sony hardware but they are on sale or cheaper on the MS hardware. You can only have PS+ on Sony hardware or Gold on MS hardware and within those services there is competition.
So essentially a digital war? The competition feels incomplete without the physical hardware serving as the "house", if you will, that is branded to the specific competitors. Maybe it's because this is the day and age that we live in...but you need to consider that this is the day and age that we live in. For the fans, the consoles are necessary. Maybe for the casuals this would work, but it's because they don't really care for the competition. They aren't jumping on GAF every single day to debate which like minded enthusiasts like we are.
Mind you, I don't wanna just completely dismiss your preference for a one console system for all games. Sure there's a bad side to exclusives, but honestly where would we be without them? They obviously serve a purpose. Innocently they get people excited about the system they chose to go with. Exclusives affirm the choices the player has made, the IDEA they bought into. That's not just a name or a company. It's an experience, a sub-sect of the gaming culture that resonates with them the most. That diminishes in a one console system.
Sure, the way things are now...it creates fanboys and assholes and the like...but think about something like sports. Where would sports be without crazy ass fans going to cold weather games topless with body paint on and tattoos of their favorite team on their arm? Same thing applies to games. I sometimes can't stand fanboys, but that doesn't mean I don't understand why they exist and I recognize them as a necessary, unavoidable by-product of this system.
EDIT:
Wait I just went over what you said again...So you're saying have multiple consoles, but all games are on all consoles? Just with subtle differences in prices? I think that just makes things a bit confusing and...unnecessary. Like why have multiple consoles if the offerings are essentially the same...maybe negligible difference in prices. How would a new customer decide what console is best for them? What's a more effective way for a console to distinguish itself in a substantive way?
