The biggest problem I see with computer games these days is that alot of them are failing to truley exploit the strengths of the platform. The main strengths in the PC are versatile controls, better graphics capabilities (on average), larger storage, integration with the internet, and a high degree of modability (both in terms of hardware and software). Game developers seem to be putting out more and more console-y games on the PC, which is basically asking for PC sales to go down. Platformers and arcade racing games are perfect for the console. F/TPS games are also pretty strong on consoles, though mouse-aim can't be beat on any consumer platform to date.
PC games should be focused on having massive worlds, better AI, more after-release content, and more interaction with the world. With a console, you have about a dozen buttons and 1 or 2 directional controls. With a PC, you have at least 30 buttons and a very versatile directional control. Though some people complain about overly complex controls, the fact is that more controls is a strength. Now, don't confuse obtuse controls with more controls. Having an entire game run exclusively on a list of 400 archaic key commands is not a strong interface. However, an intuitively designed control scheme with lots of options is good.
One problem is standardization. If we leave the realm of games for a moment, just concider the majority of Windows software. If you hit Ctrl+X, you cut whatever is selected 90% of the time. CTRL+C copies, +V pastes, +A selects all, etc. There are dozens and dozens of key commands that are standard across 90% of Windows software, so people rarely complain about hard controls, even though there are dozens. Take MS word for example. Word has 100s of commands, most if not all available from key commands, yet people rarely complain about poor cotrols in Word because they are standardized and common. Of course, most Windows programs also allow access to everything with a mouse, and that too is a strength. I challenge anyone to tell me that they actually prefer using menus in console games over interfaces on the PC.
To some extent, games do standardize controls, but not enough. In shooters, the number keys generally select weapons, WASD controls movement, etc. In strategy games, 1-0 select unit groups, the arrow keys pan the camera, and double clicking on one unit selects all similar units on the screen at the time. However, other controls change from game to game. If you could sit down at an RTS game and know 99% of the controls because you've played an RTS before, that would drastically reduce some issues people have with games on the PC.
People complain about high system requirements for games and poor backwards and forwards compatability, but really, that's not a valid complaint. Untill recently, most consoles haven't been backwards compatable, and as far as I know, none are forwards compatable. Yes, if you don't have the nicest newest machine, you can't play Doom 3 with all the settings turned up, but guess what, on a console, you are FORCED to play with graphics that are permenantly frozen at a level roughly equal to that of when the console was released. It is kind of annoying that each new OS kills a bunch of games, but guess what, I'd much rather be running on a 32-bit system with Win XP then be sitting at a command line on an 8-bit machine so I could still play games from the 80s. At least on a computer, if you try hard enough, you can figure out a way to make it work if it is at all reasonable to expect it.
The computer holds the biggest lead in storage. No matter how you cut it, you just can't fit as much game onto a console cartidge or CD/DVD as you can onto a computer harddrive. This means that PC games should focus on having alot of content, such as lots of levels and items etc. This also ties in with the modability issue in that games should have alot more after-sale content added in. Unfortunately, with the trend towards a console-centric market, expansion packs and large free add-ons are being increasingly passed over in favor of half-assed sequels, since consoles can't do expansion packs at all.
Finally, yes the fall in PC sales is caused in part by piracy. A decline in quality and ease of use are also causes. So is the poor economy. But the biggest reason I see that the PC game market is falling is because developers are gravitating towards making console games and porting them, which means that fewer and fewer games actually fully exploit the strengths of the PC, and thus people end up buying them for the console because it is easier to use. The industry needs to refocus on making PC games for the PC, not platform-neutral games or games that are primarily console.