yeah, it's ridiculous, but i'd say microsoft should bear part of the blame. let's face it they would sell more windows 7 copies if some software isn't compatible. too much compatibility and everyone sticks to xp with no reason to upgrade, too little compatibility and everyone sticks to xp because it's too much work.
as for console ports, i already follow the same philosophy as your in-law for the most part, and only buy console ports that really interest me.
last time i tried, this happened (keep in mind this is a computer copy):