If they stuck with hucards longer than they did, then yes, 8KB is just to low for uncompressing allot of graphics.
I just spent a good part of last week playing the most impressive games on each system(with the exception of rendering ranger for the snes), actual console, composite video.
Best graphics: Beyond Shadowgate, unparalleled detail, lots of color in the BGs, tons of animation, very high resolution, standard horizontal res for pce and snes games is 256, standard/high res for genesis is 320...Shadowgates horizontal res is 352 which means every thing looks great on an actual TV.
Other great looking games: Seiken Densetsu 3 for the snes and Flink for the genesis.
Best animation: Saphire...believe it or not, Rondo has more frames (actual unique frames) than Sapphire but the type of animation and size of the spites and tiles(for some bosses) that animate, are what make the difference.
Other games with good animation: Donkey Kong Country, Earth Worm Jim, Rondo, Toy Story, Fatal fury special(ACD)
best special fx: Rondo, frames, and art, make them the best in my oppinion, they are still being used to this very day...this isn't mode 7, this is beautifully hand drawn animation.
best fmv: Silpheed.
best 3D: either Starfox or Virtual racing.