Despite its advanced and complicated design it was outpreformed pretty easily by more general purpose cpus that where not nessicarily much newer.
Of course Xbox and Gamecube also released at least a year later than the PS2, and graphics tech was moving fast at the time, so that was an advantage for them as well.
Extra silly when you consider that the N64 had already been hamstrung by the decision to use <= 64MB cartridges over CDs.
After the CD-I debacle, Nintendo was not at all on-board with the idea of disc-based storage. One of those reasons was loading times.
Another was likely that they had concerns about games that were more 'FMV' than game; This really -was- a legit problem in the 90s. By keeping things constrained, it limits the temptation for a publisher to push out a crappy title filled with cutscenes.