I often wonder what the Jaguar would be capable of if SNK had adopted it as their next 2D powerhouse system, thus keeping it alive. The 68000 combined with the Jaguar's crazy good sprite-pushing abilities would have produced some amazing games. SNK tried with the Saturn but I believe the Jaguar had better 2D capabilities.
The Jaguar can do 3D in a way that would compliment well designed and fun 2D games, much like the FX2 chip enhanced a few effects here and there in Yoshi's Island 2.
I'm sure the Jaguar is capable of some pretty amazing stuff, given the right amount effort. I imagine the Jaguar CD could maybe even do a great port of Metal Gear Solid.
It's not bad hardware. Complex and with a few bugs, however, with a talented and dedicated studio with skilled programmers and a lot of money the Jaguar is capable of something that makes AvP look archaic in comparison.