Lots of you have replied so intead of getting into individual debates I'll sum it up in one.
I've been gaming since the mid 80's so I was there back when KI first came out but I will admit I was never big into the arcade scene - more to do with funds as a kid than not wanting to.
So KI was a huge deal in the arcades, which is something I didn't experience first hand. I was aware of Virtua Fighter being considered a better game in the arcades over Tekken and was a much more tactical game.
But my main point was how KI lost popularity from SNES to N64.
Just look at the sales: 820k for KI Gold compared to 5.74m for Tekken 2 and 1.93m for Virtua Fighter 2.
If N64 wasn't the home of fighters then that just shows KI wasn't that big of a deal becasue if it was it would have helped popularise the genre on the console.