No actually. Companies like ID and EA operate in different markets than "indies". More likely it'll mean less market room for the indies, as the more "casual" or nichce game markets will shift to the consoles, along with the mainstream market. Primary candidates here are of course the Wii and XBox Live Arcade.
Nah, not everyone wants a console, i only use mine as a remote media player & emulator. Some people (like me) hate playing certain games on consoles, especially FPS and RPGs. People will always want games they can play on their PC/Laptop/PDA. The more who emigrate off to consoles, the less saturated the market and better for us casual/indie types.