Again you misunderstand the Neo Geo's capabites. It can't do parallax because it doesn't have back grounds nor does it need too. All it does is make massive animated sprites and does so extremely well. That alone forms a moving animated background and That alone can make almost anything needed such as shrinking and growing a sprite without pixelating it like the SNES does. Any rotation needed would simply be animated. Not like a fmv but a real time moving encironment at lightning speed. It has the brute force to do so. Riding hero is a launch turd but a more capable programmer with near a gig of cart space can do as he pleases with 2d sprites. He'll even a bare sega genesis can do it to a lesser extent just based off its CPU speed.
I was talking about the kind of layered background scrolling that the Neo Geo can do. All of this was covered in the sega-16 discussion you referenced. The Neo Geo can only render a limited number of sprites at once and it can only do 16 pixel wide sprites (but they can be as tall as 512 pixels). Doing the types of games that the Neo Geo does quickly approaches its sprite bandwidth limits. The system was more or less maxed out bitd. Also, because of the unique hardware design, it can't use any of its "brute force" to render anything original on the fly the way that regular consoles and computers do, no matter how simple or complex. So no rotation, no Doom/Face Ball style graphics, no polygons, no wire frame. It literally can only do the kind of 2D games that its library consists of. The Genesis is the only 16-bit generation console to have much success rendering on the fly using shear brute force.
It also cannot "grow" sprites at all. The SNES can only scale up a single tile layer, so it starts perfect and then the pixels get bigger, but remains relatively proportionate. The Neo Geo can only scale down or "shrink" sprites. So it only looks perfect at the largest size, but distorts as soon as it begins shrinking, as detail is rapidly lost (unlike how the SNES simply enlarges the detail).
Neo Geo style down-scaling
<---- ORIGINAL -----> SNES style up-scaling
Both the shrunken and grown images are shown at uneven integers, so you can see what the distortion looks like when it isn't blown up to 200%, 400%, etc. The Neo Geo style shrinking rapidly ruins the image, so it's no good for the kind of sprite scaling games you are suggesting. It would have to just use all animation, essentially fmv for the backgrounds, like Fast Striker does.
Here is that shrunken sprite evenly scaled back up 400% and the up-scaled sprite doubled to show the difference in distortion-
Riding hero is only doing the kind of racing background that 8-bit consoles do. It just shrinks sprites to save on space. Otherwise it's no different than Hang On for SMS. Only the SNES and later consoles can do the kind of Mode 7 that F-Zero does. Mode 7 created an entire new genre of racing gameplay. The old kind is still fun, but Mode 7 was something different and potentially deeper, just as fully 3D games are beyond Mode 7.
The Neo Geo isn't a super powerful console, it's just good at doing the one type of graphics that it can do. Compared to the Saturn and Playstation, the Neo Geo is overall on par with the PC Engine, Genesis and SNES.