I'm pretty sure the hardware would have given developers a real run for their money to create a SNES-level JRPG experience with smooth, good quality sprite-based graphics. As far as I know it has no 2D acceleration like the SNES, and a very small texture buffer, which leaves slow software rendering directly to the framebuffer, or low quality texture-based sprites. The hardware was really not designed for this type of game, so few were made.
Not providing any hardware to handle those types of games was a function of 3D being all the rage, and the hardware being very clearly targeted at that, but it also meant that creating 2D games was not just out of fashion, but impractical.