Console MMOs have never taken off for a very simple reason. The lifespan of a high quality MMO is 5+ years. The lifespan of a console is about 5+ years. This means to maximize profits the MMO would have to be released as soon as the console hits store shelves.
Considering how much testing MMOs go through before release, it's just never going to happen. At the earliest they could probably get an MMO console out about a year to a year and a half after the console releases giving it maybe a 3 and a half year lifespan before gamers move on to the next gen hardware. It simply isn't worth the effort.
Also, factor in the need for a keyboard to communicate with others, as a headset doesn't handle multiple simultaneous communication channels well, and you may as well be sitting at a PC in the first place.
All that said, no, there's no MMO out right now that can beat WOW, but if anyone can ever bring out a quality MMO that doesn't revolve around endless grinding for rep and loot they will certainly get my support.
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