I’m aware this wouldn’t have solved the other issues - such as the desperate need for a ‘Killer App’, and - of course - the big Sonic/Mario problem of the time, which was a major draw into SEGA or Nintendo’s camp.
The system - as is - is probably way more capable than what we were able to see from the software we got.
I read that a ton of Jaguar games actually abused the sound chip (I think this was it?) - which was a Z80, or something similarly simple to develop for, and thusly some of the software was literally using maybe 20% of its potential.
The previously-mentioned SEGA Saturn would often be similarly abused (though not nearly quite as bad as running most of your program code off the sound chip) where programmers would use only one of the core graphics chips or only of the SH2’s (or both…) which resulted, of course, in much; much poorer performance than the serious powerhouse the Saturn was during its lifetime.
Many PlayStation/Saturn ports of the same side by side make this difference brutally obvious. (The Saturn DOOM port is, sadly; a notorious example. It was Carmack’s decision not to run it on the 2 VDP’s - to which he later acknowledged was a mistake.)
The Saturn and Jaguar debacles really woke up the industry a lot to caring about developer needs - with documentation and follow through with developer support so poor that even at-the-time behemoth EA refused to support SEGA’s next console, the Dreamcast; in what would’ve been an unthinkable move 5 years before.
EDIT: after making some corrections, I realized on editing I pulled all this info from memory; which honestly makes me one hell of a geek, lol…