How is this state much different from installing Steam on a PC with a couple controllers and sticking it in your living room, besides the C64 being extremely cheap and (as far as I know) not as customizable?
PCIe slots can carry you pretty darn far, and if you can use a Genesis cartridge, you can upgrade a PCI slot. For instance, on mine I added: USB 3.2, an NVMe slot, and a new graphics card. If I wanted to, I could throw in a faster network card. I could easily use the latest generation graphics cards without issue. I can play a game with at least 60fps in 4K. The only thing that really limits you is the CPU socket and the memory. Even then, after a few years you can throw in the highest end (or near highest end) server CPU for dirt cheap and some better and larger sticks RAM for not so bad a price either.
> The appeal of a console is that it's an appliance - you can just plug the thing in, not worry about any of the technicals, and go play games with minimal fuss.
Also there was certainly a chasm in capability between the 386 and c64 but the games weren’t there and you would have had to spend a lot more. At that stage anyway we had Amiga which really wasn’t surpassed by PC architecture until maybe the late 90s