every console has some outdated technology, but look at the specs on the PS2 for it's day. 16 pixel pipelines with 8 TMU's with an embeded framebuffer was nuts back then.
nintendo may have made storage choices to combat piracy, but sega surely didn't. they would have used DVD had it been comercialy viable at the time, but instead they settled on the GD-rom. the cheaper, older technology that featured less storage.
per pixel lighting and shading can easily be fixed function. the Geforce 2 GTS* was called GTS becuse it stood for Giga Texel Shader. the Geforce 2 was also capable of per-pixel lighting.
anyway, the point was that neither the DC nor the GC were really technology beasts. look at the tech and compare it to what other consoles had and what was available in the PC space. when did the first 16 pixel pipeline graphics cards come out for PC? and what other console has 16 pixel pipes today?
*high end GPU from 2000, the year the PS2 was released, that has 1/4 the pixel pipelines of the PS2's "outdated" GS. the Geforce 2 is fixed function.