At the time (I was 17) when N64 came out, I remember how excited I was for it. It's kind of hard to explain to someone unless you were there because it was something completely new that hadn't been done before. Super Mario 64 was ground breaking for its time. It wasn't just the graphics either, but the analog controls. Sure there were some problems with the system that's a lot easier to criticize now, but for its time, it was amazing. As great as PS1 and Saturn were, nothing really compared to N64, not even PC imo. In fact, N64's graphics was ahead of PC for a short time. It really was in a league of it's own.
I also remember arguing w/friends over which system had the better graphics PS1 or N64. N64 was the clear winner imo. Yes, the graphics were blurry and washed out, but the PS1's graphics were dark, wobbily, full of jagged edges and blown up looking - which I now I know was the resolution. The controls on N64 were also far superior for 3D games. It's not even comparable. PS1 obviously had a lot more games, but like N64, there are only a handful of them that I was interested in.
The prices of games and software droughts on N64 were ridiculous though. Looking back, I think that's one of the reasons the attach rate to GC was so high. Despite the fact that GC still suffered from droughts, Nintendo fans were eager for games and happy to pay for them at the now much lower price. Xbox also took a lot of the western gamers away from Nintendo. Nintendo lost western third party support (something it had a lot of on N64) and the people who liked FPS's and racers went to Xbox.
That being said, one of my favorite games on N64 that I haven't seen mentioned yet is
World Driver Championship. It's a graphical showcase for the system and one of the best looking (and fun) games on the system imo.
https://www.youtube.com/watch?v=1T_zHVO_K8I&list=PLA7522A8290F9E884&index=48#t=2m48s
I think it's also worth mentioning that despite there being a memory expansion pack available for N64, this game
did not use it. Boss Studios pulled some rabbits out of their hats when they made this game imo.