More, much more. We've long hit a point of diminishing returns for a lot of standard consumer workflows. More CPU and RAM helps mainly for "specialist" workflows (including software engineering) and can be really nice, but computers have overall been "fast" for a while now.
Back then you could notice an increase in CPU frequency or cache in almost everything you do, even if it was just writing a letter. And more RAM allowed you to do things that were virtually[1] impossible before. Especially because there were no SSDs: You paid dearly for anything that could not be kept ready in your puny RAM.
[1] Pun sort of intended: Virtual memory might technically allow you to do those things anyway, but often the performance cost was so high that it was no fun, if not pointless. But we're also talking of the DOS/Win 3.x/DOS extender days, where virtual memory was technically possible, but definitely not ubiquitous.