I have not voted, as its hard to say really. I think everything has been said already.
Video, well the ST was a bit low tech, but hey they came back with the STE, better video and slightly better sound tech. So I think they were along the right lines there. They also moved over to simms to make upgrades of ram easier.
All was good progress, though I feel they should have done a STE MK2 or something BEFORE they did the Falcon. Same as a STE but faster CPU. Would have taken a lot more dev time but would have made a real nice STE. My STE has the 020 cpu upgrade by TUS, runs pretty fast indeed. Atari should have done that in the first place!
Trouble is, by the time they brought out the Falcon, it was really too late. They spent far to much time in redesigning the entire thing. Was a fantastic thing the Falcon, but They should have taken slightly smaller jumps. Atari also spent too much time developing consoles trying to outdo other manufactures of the time.
Why did they go wrong ? trying to outdo other people, taking far to long in dev and never producing enough tech. A small revamp of the STE I think should have come before anything else. When they jumped from ST to STE there was some nice stuff added. Though the jump was to far to the falcon, they just took too long. All the dev work cost them a lot, made the falcon expensive.
I think they just wanted to produce the best but just took far to long and by the time the Falcon was in production it just was game over for them.
Would have been nice to see the STE with a internal IDE, SCSI built in, 030 cpu, bascially the falcon, but they also added the DSP , assume to make a better sound system, great! A lot of 3rd parties were already producing tech for the STE, hard drives, CPU boosters. Why didn't Atari to take all those ideas and build a MK2 STE! The work had already been done, all Atari would have had to do is revise the motherboard.
Though they went all out on the falcon rather than just upgrading the STE. If the falcon had came out instead of the STE than that would have been fantastic, though probably about 10 years too late