A lot of Saturn's architecture was designed to be able to crank out some bitching 2d games and creating the 3d ones was a real pain in the ass. PS1 came out with an extremely 3d friendly architecture and developers were able to get some (relatively) impressive looking games up and running much easier than on the Saturn.

Plus a poorly timed launch without any killer-apps. If they had held that thing until they could show VF2, Panzer Dragoon 2, the Virtua Cops and the Daytona games they might have been able to make more waves. Instead PS1 came along with Ridge Racer, Battle Arena Toshinden, Wipeout and some others and the Saturn was stuck playing catch up with all those titles.

I had a Saturn, too, and it fucking kicked ass. I imported KoF '97 before it was easy to get those games in the US, plus I played the living shit out of all the Street Fighter Alphas that they put on that system (6-button controller, too -- hell yeah). Nights was awesome and Virtua Fighter 2 is still better than like 90% of the fighting games released since then. I never did get Panzer Dragoon Saga, although all I've heard is that it's pretty legendarily good.

In the end, though, I would say the Dreamcast was better and is easier to track things down for nowadays.