I choose both! There's more than just FMV games on the Sega CD just like there's more than just sports games on the Genesis. If that taints your memories then that's your problem.
I'm betting that if NEC could, they would have been all over the FMV bandwagon. Nowhere along the line did they say "Let's stick to good, real games because we feel that's a better use of the technology". The problem with Sega is that they had the budget, the marketing and the CPU to make lots and lots of FMV games. They took that money and made it so the FMV was eventually full screen. Of course I'm not saying those games were good, but Sega of America heavily invested in it and advertised it, thus is was. Wasn't really the case in Japan. Road Avenger is the tits, though. NEC's first FMV product on their system was also less-than-stellar. Sherlock Holmes paused every few seconds whereas the Sega CD version did not. "But Joe... the Turbo version has 512 horizontal pixels so much sharper!!!" Would you rather watch a Blu-ray where the video paused every few seconds or a DVD that plays smoothly for the entire duration? I thought so. They shouldn't have done such a high resolution. That was a dumb decision. Needless to say the genre thankfully didn't catch on like some thought it would.
Hardware-wise I appreciated that Sega added more to theirs in the terms of 133t FX and more processing power. NEC's product is basically just a TurboGrafx-16 with a CD player and an additional sound chip. This may be seen as a weakness but at the end of the day it was a strength, because that makes it harder for them to make stuff like FMV games. Magical Dinosaur Tour is truly what the system is all about though.
EDIT: Another thing I'd like to add is that Sega of Japan never really learned how to make proper games for their own system. No Japanese developer really did. It was the Europeans and Americans who got BY FAR the most out of that scaling and rotation hardware. Japan was very inept and making games for the thing. A few exceptions of course, but generally it was just lazy programming over there.