Aren't there just more of every type of game out nowadays, FPS doesn't seem to have a higher overpopulation that anything else to me
I guess this is true, but after Halo and the crowd it brought it, it seems to have tons of people trying to cash in on the console FPS market. The genuinely good games to come from this I could probably count on one hand. The few old guard FPS franchises left haven't put out a decent game in years because they're busy developing for consoles, and there are huge communities still playing 5-15 year old PC games that are neglected and waiting for something new.
using a controller takes a lot more skill to become truly good, you have to put the sensitivity to the max to be comparable to a mouse's reaction time, which makes accuracy much more difficult, so with consoles it takes a lot more to be really good.
I'm not going to argue with you about the aiming. You can do alright with joystick aiming, I think you're wrong, but you're entitled to your opinion. To me I'm essentially working harder to do less, and you could never get to the level of skill you can reach with a mouse. Just look at videos from high-end players from each platform's FPS's.
The big difference is MOVEMENT. Can you jump or crouch without moving a thumb from a stick? Are your games designed for rapid strafing or movement key combinations? Can you bunny-jump? Strafe-jump? Snap down for a rocket jump, then bounce off of a wall, snap around to shoot a rocket behind you, and air-strafe to a ledge? Can you skitter around at 5 bajillion mph as an alien in AvP2 (or Natural Selection), bouncing from the floors to the walls and snapping the camera around accordingly?
Ever notice how modern console shooters all seem to move at a somewhat similar pace? This is for a reason. If everyone was able to move the way they can on good PC games, 95% of console users couldn't hit anything.
I can easily play on equal footing with a computer player...unreal 3 proved that
UT3 was absolutely horrible and removed almost all of the things that made it a challenging game. Of course you could compete, it was designed and optimized for consoles, and all the competitive players went straight back to UT2k4. (interesting note, Killzone 2 has an option to filter out mouse/keyboard users for a reason)
Really though, if you're competitive enough to sink your time into becoming that skilled with a controller, why not compete in harder games with a higher skill cap?