Your definition of "people" seems to be "internet forum-based gamers", for the most part. Which is a very very skewed demographic to say the least. I suppose one could argue that you're talking about "hardcore gamers", but again, that's a very skewed group to look at as they don't represent the majority at all. Certainly the "hardcore" demographic represents the most prolific buyers, but as for actual numbers of people in the demographic, they're highly outnumbered by the more traditional "non-core" gamer.
And I ask you this, as well: if technology matters to people, then why did the NES clean the clocks of its competitors' 16-bit systems, why did the PS1 dominate over the technologically superior N64, why did the PS2 completely own the market when both GameCube and XBOX outclassed it, and why is the Wii giving the PS3 and 360 a run for their money? You could effectively argue that the technology counts in the case of the NES and Wii in the sense that they bring something new to the table control-wise (standardized two-handed controllers for NES, motion controls for Wii), but what of the PS1 and PS2? They had nothing compelling over their competitors technology-wise. No, playing CDs and DVDs does not count, as they were not optimal for the task and few people would seriously look at a game system and think of it as anything but a game system. The idea of an all-in-one technology center is the fantasy of technophiles alone; the majority want a device to perform one task well, not many tasks poorly.
Technology is not a determining factor unless the market lacks differentiation badly enough that there's nothing else to go by. Games which appeal to wide demographics (or many games that each appeal to a different demographic) are what set systems apart and let them succeed over their competitors. And unique controls that throw convention into the wind and successfully try something new are important considerations, as well. But processor speed, sound capabilities, graphics rendering technology? Only to the overly dedicated gamer will these things factor into the decision about making a purchase.
Sky Render - Sanity is for the weak.
