M2 was designed to be a powerful consumer-level piece of hardware intended to cost no more than $400 tops. M2 development began in 1993/1994, and was completed in 1996. The Model 3 board was designed in 1995/1996 (began later than M2) as a highend arcade board where cost constraints were not nearly as tight.
Of course M2 doesn't look as good as Virtua Fighter 3, but it was meant to be more powerful/capable/better-looking than Model 2 Daytona USA and VF2.
For what M2 was meant to be, it was solid. Nothing revolutionary, just the best consumer level 3D hardware of 1996/1997.

