Of course it's specs were comparable to Xbox and PS2. In fact, it was more powerful than the PS2. I welcome you to refute it. Just look at the Gamecube version of RE4 and compare it with the PS2 version. Google the tech specs of both machines.
DVD playback does not make a hardcore gaming machine and is nowhere on the level of contemplating a Wii without motion controls (which is the whole point of that machine). If anything, DVD movie playback capability is there to draw in casual buyers since it has inherently nothing to do with playing games itself.
It was a core gamer's machine through and through. It's failure was an entirely different matter, as I said in the previous post. Gamer's were left sour by the N64, which was considered a barren wasteland when it came to game releases. On top of that, Nintendo in the 90's had inadvertantly built it's reputation as the 'kiddy' gaming company, and as gamer's and their tastes grew older, most of them stuck by Sony, who had build a juggernaut out of the Playstation that kept up momentum into the PS2. Xbox, on the other hand, had Halo, and that's all it took.
Nintendo was left in third place because of all that, plus some of their core legacy titles (though great games) were too different from what old school gamers knew. Metroid had turned into an FPS, Mario Sunshine had weird, un-Mario-like mechanics and Zelda: Wind Waker looked like a cartoon.
God, that was too nerdy of me. I promised myself I'd never do that kinda rant anymore. But I loved that generation.