I give Sega all the credit in the world for being willing to try something new but to me it still felt more like a tech demo than a polished fighting game. I just didn't think 3D was there yet. A few years later, playing Soulcaliber on my Dreamcast... now that was a different experience. But I'm biased toward 2D fighters, in general I think they control better and I usually find it easier to pull off combos.
Don't forget the CD-i. Phillips touted it as this revolutionary device that would replace your game console, multimedia PC, VCR, etc. What did it have at launch? A couple of edutainment titles and Connect Four?