This is easily the best SMS compilation video I've seen on youtube. I particularly liked that you used the seldom-heard ending music from Y's.
Although many games didn't take advantage of the hardware (just like with the PC Engine), whether you go by just the visually better games or even everything overall, it really is more of in the realm of 16-bit console quality graphics than 8-bit or NES range. All without any enhancement chips. And North Americans still couldn't be bothered with it.
History is repeating itself right now with the Wii outselling the 360 & PS3, only this time it can't be argued that there's a better selection of games gameplay-wise.