I would prefer an industry with Nintendo-Sega, I think we would be better off as gamers, the collapse of Sega in particular really has robbed people of so many great games and so much personality from the gaming ranks.
So if Playstation didn't exist, most of those third party games simply would've just went to the Saturn, Sega would've shaken off a slow-ish start with the Saturn (not like the Playstation had a great start either) to win that gen and make a lot of money.
In my opinion that would've been the preferable scenario.
But y'know you can't really blame Sony. They won fair and square. The console race is less about matching each other for "big plays" like the fanboys make it out to be (as in a "oh yeah?! we'll top your big game/announcement with this even bigger one!" type thing). It's more like a game of golf ... the company/person that makes the fewest mistakes generally ends up winning.
That's basically Sony. They don't do anything shockingly mind blowing, but they don't make a lot of the stupid mistakes Nintendo and Sega (and even Microsoft) have gotten themselves into, other than the $600 PS3 to force feed Blu-Ray to people. In 20 years of being in the console biz that's the only major mistake they've made and by 2007 or so, the PS3 was already coming down in price to a reasonable level.