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Yeah, I agree.
Mini DVD wasnt an issue. PS1, X360 all have medias that some games needed 2 or 3 discs, so a 1.6gb disk wouldnt hurt nintendo game cube more than ps1 and x360. and the 2 later were sucesfull despite their disk media.
And some really believe that the format of the console mess up with the sales? the color? you could choose the color(mine is black).
Not having a DVD player and the release date was obviously the problems, IMO.
(and of course they start loosing consumers on 64, but excluding this variable, suposing you want to make a new sucesfull console after 64, you cannot blame the predecessor, just make a game console that goes well despite its predecessor)