Fact: The mouse and keyboard is the most fun and most realistic way to control a gun in a video game.
Fact: It's not viable to have a mouse and keyboard in front of you for most home console game setups in front of a TV.
Fact: Video game companies have been telling us that people are willing to forgo the awesomeness of the mouse/keyboard in order to have the social aspects of a console connected to a television that you can sit down in front of and play games with your friends.
Fact: Most games these days are FPS's with little chance for playing together with someone else in the same room as you. Either you are forced to play split-screen or the coop mode is non-existent unless you are playing through the internet on separate systems.
Fact: It's difficult to find a decent coop game that can be played in the same room for this generation of consoles.
Fact: The only console that has a better solution for FPS input, the Wii, is more focused on non-FPS games.
Fact: Other means of input have a long way to go before they become truly enjoyable for FPS gaming.
Given the stated facts, it's hard to justify the actions of the console video game industry. Why do they continue to make games that are largely single player affairs? Why isn't anyone making cool coop games for consoles that don't have lame physics-based controllers?