I remember Genesis owners saying it was better than the SNES. Back in those days I only had my TG-16, NES and SNES. They would come over and play games like Super Punchout and other great titles. Then they went out and got a SNES that Christmas. Don't get me wrong, I like the Genesis as well, but there just was more quality in the SNES hardware and overall game titles.
The color usage for the TG-16 was just better not to mention the composite output. Now some of the later model Gen 2 system had a the better version of the Sony CXA video chip. Still, I liked the Gen 1 system video output once modded with S-video, you don't get the vertical graphical bars.