The library of near-perfect console ports is what set this apart for me. It was a arcade fighter's dream. Another cool hardware feature you missed is the native VGA support for most of its games. That was pretty amazing for a console of its time. Still remember playing it through someone's laptop, when we wanted an impromptu gamer setup at any table we sat in college.
Regarding competition with PS2, Dreamcast lacked support from major publishers like EA and Square which contributed to its demise.
I completely forgot about the VGA feature. You are also right about the support from the major publishers, not backing the Dreamcast. But I think Sony had something to do with that.
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