Yeah Dreamcast good hardware, PS2 had more enthusiastic game developers they put a lot more work into the games, the main reason the driving games looked significantly better on PS2,
Hardware that can do almost anything graphically and gameplay wise vs more powerful hardware that can do almost anything graphically and gameplay wise, both still hardware that can do almost anything they are designed to do,
Dreamcast the 1st console that could do just about anything graphically and gameplay that is why they called it Dreamcast, Sega said.
Sega Model 3 arcade hardware which was a few years behind Dreamcast could do just about anything as well, some of the games look as good as the original Xbox games like the advanced track in Daytona 2, when they ported it to Xbox as a bonus for Outrun 2 they didn't change much because it does look as good as a lot of Xbox games graphics, i dare say the Sega Model 3 arcade version looks slightly better than Daytona 2 on Xbox,
Sonic Adventure 2 and Shenmue 2 looked good but probably not close to Dreamcasts full potential, they discontinued Dreamcast just 2 years from its launch or something like that, the games would of got better and better no doubt as the years went by if it continued.
We probably never seen the full potential of any video game hardware, developing games is time and money, they have a set time to develop the games and a limited budget.