Yeah, it had very bad timing. The hype alone from the ps2 killed it. They probably should of waited until the ps2 was nearing release, or added dvd playback with it from the get go.
It's actually the fault of Sega releasing too much hardware and extensions for their systems, instead of supporting it with enough games(Seriously, I've got like 10 only and can't find anything else that's good enough to even look at).
Actually the PS2 system itself didn't kill Dreamcast - when you compare games released on both systems, you'll see that DC ones came out better(PS2 was a hell for developers due to the coding for it being very awkward compared to easy PC-like Dreamcast coding), for example Rez or DOA2.
And DC lived actually 7-8 years, if you count the arcade ports as game support. Died along with the NAOMI-II arcade board, which is actually the same thing.
I'm saying Marvel Vs Capcom 2 is the best of all time simply because people are still playing it and I hate myself everyday for bricking my PS2 so I can't play MvC2 anymore.
I'm the biggest Touhou Fan here...any challanges? PM me.