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How would one console hurt? Because the manufacturer of it would have ZERO competiion, and could deliver the crappiest console ever, and nobody would have any choice between it and something else. You would be stuck with the crappy console. The manufacturer wouldn't have to make it any better, because either way, they have no competition.
“One game publisher would be bad. One giant game developer would be bad. I get how those things would hurt gamers. But why would one unified hardware platform?”
It's the same answer to those questions. People like choice. And with the competition comes competitive pricing, as well as competitive game development. Sorry Jaffe, stick to making the games, let the big 3 continue making platforms, and just let the gamers game on.
I'm speaking in hypotheticals though, so don't take me seriously. And of course, I don't necessarily want that, but I'm just pointing out. I don't think one company making one all-powerful console is a good idea at all, BUT, a few companies working in conjunction to make a single console -- that's an idea that could work.
I'm perfectly fine with how things are now though. I just wish fanboys would quit whining. Shut up and go get laid.