Cost was the innovation for those early home computers. They weren’t doing anything remarkable, except for doing it at a price ordinary people could actually afford. If you were willing to spend more (because the computer ran your payroll, or because the computer got people to drop quarters into it all day long) you could get much more capable stuff.
These days you can drop a few hundred bucks and get something that’s not too far off from the best that money can buy. The main difference between a cheap PC and what passes for a “supercomputer” these days is that the supercomputer has much better interconnects and there’s just a lot more of it.
It's been a real trip watching the accumulation of exponential improvements the past 50 years.
Atari 800 Home Computer System was released in 1979 and had both bitmap and character graphics as well as sprites.