Can XNA and C# be used to create commercially feasible PC/XBOX games?
Is it the best approach for creating 3D games with C#? If not, what would be?
Actually you can do that but it is a little bit tricky.
You need to pass via an approval process by the "community" (XNA Creators club Online users).
You will also need to pay an Xbox live account plus an Xbox live developper licence.
According to XNA FAQ:
Do I need an XNA Creators Club premium membership to create games? You don't need a premium membership to make games for Windows or Zune. However, you must be a premium member and in a supported region to create games for the Xbox 360, to release Xbox 360 games to Community Games on Xbox LIVE, or to peer-review submitted games.
Who can peer review XNA Community Games? A member of the Creators Club whose premium (paid) account is in good standing and is a legal adult (for the countries we currently serve this means 18 years of age or older).
And: Why does my game have to be peer-reviewed? Why can't I just send it to Xbox LIVE marketplace? Peer reviewers help creators write better games, and protect game players from experiencing highly offensive or malfunctioning games. Peer reviewers will reject your game if:
Your game contains prohibited content, which is content not allowed on Xbox LIVE services
You misrepresent what is in the game play or in the promotional materials for the game
The promotional content for your game ( for example, the box art, description, banner or title) is not appropriate for all ages on Xbox LIVE Marketplace
The game crashes, it has too many bugs, or it is technically defective in some way
the faq is can be read here
If you want to do it simplier you can play with DirectX directly or even other libraries like SDL (for 2D games). Actually C# is very good for a variety of things and it gets better as the time goes.
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