But even during the PSX era I found it distracting and annoying to look at so I can't say I have any nostalgia for it even now in the way I do for N64-style low-poly 3-D games or good pixel art.
Even with realism, ports to dreamcast were better overall and considering the latest port of Final Fantasy Tactics does not emulate any of its PS1 limitations, I don't think a lot of people strive/like the aesthetic.
I guess you can pretend that the JRPG or Resident Evil are Visual Novels with some action game play (or turn based combat) thrown in?
Then again, the good games would have been $50 instead of $70, and there would have been a lot more developers willing to pay $0.20 per unit to ship games than $20 per unit for the common 12MB and 16MB ROM chips.
However, I don't know if Ocarina of Time or Majora's Mask would have worked as well without that ability to load entire scenes in < 500ms. Diddy Kong Racing and Indiana Jones & The Infernal Machine relied on the ability to stream data from the cartridge in real time to smoothly transition between scenes/areas. DKR only used it in the overworld AFAIK, but it was still impressive.
Not saying you're wrong, just that I'm glad things turned out the way they did because Ocarina and Majora's Mask likely could not have been done on a Saturn or PS1 beefed up with the N64's GPU.
I could be wrong, and some experienced romhackers could conjure up enough clever optimizations to make a faithful PS1 port of Ocarina of Time that doesn't have noticeable load times, but it would have been the result of years of research with no deadline pressure. I admit I'm just speculating, but not in a presumptuous and baseless way.
They could have used SDRAM and it would perform so much better, and I believe the cost is around the same.
If you wanted to cut something, cut the antialiasing. While very cool, it is a bit wasted on CRTs. Worst of all, for some reason they have this blur filter which smears the picture horizontally. Luckily it can be deblured by appliying the inverse operation.
Of course, Nintendo clearly cared about the CPU a lot for marketing purposes (it's in the console's name), but from a purely technological perspective, it is wasteful. Most of the actual compute is done on the RSP anyway. So, getting a much smaller CPU would have been a big corner to cut, that could have saved enough resources to increase the texture cache to a useful resolution like 128x128 or so.
It should be noted, though, that the N64 was designed with multitexturing capabilities, which would have helped with the mushy colors had games actually taken advantage of it (but they didn't, which here again, the Nintendo SDK is to blame for).
If you sell games for roughly the same amount as before (or even a bit cheaper), you have extra surplus you can use to subsidise the cost of the console a bit.
Effectively, you'd be cutting a corner on worse load times, I guess?
Keep in mind that the above ignores questions of piracy. I don't know what the actual impact of a CD based solution would have been, but I can tell for sure that the officials at Nintendo thought it would have made a difference when they made their decision.
