If you want to say the only console that was was around in 1997 was the Saturn and how you were oblivious to other consoles, then its Pal output would be the best, since it's going up against nothing other than your PC.
Just stop with your silly system war framing. I don't need to compare anything to the PlayStation or N64 releases at the time to find Sega's output in '97 disappointing. It was disappointing compared to what we got on Saturn in the year or year and a half before that! Sega went from putting out games that were cutting edge at the time (VF2, Rally, Virtua Cop...) or unique and innovative like Nights and Panzer Dragoon Zwei to uninspired sequels, lackluster conversions lacking in content and outsourced mediocrities. Their few late Saturn releases in '98 showed that they still had it in them, but there was a very problematic gap in fresh quality titles from them between early '97 and the spring of '98, when PD Saga and Burning Rangers finally came out.
And yeah, if you didn't import anything, a handful of belated PAL releases of '96 hits from Japan and the US were still very much worth playing, but I still remember what that also meant: Instead of having Sega magazines full of new games, we'd be getting early previews, previews based on the import version (or outright import reviews), sometimes yet another preview before the PAL release and then finally the PAL review. Everything was milked to the max because there was a lack of good and truly fresh PAL releases in '97.
Again, silly that. It's like saying who needs KOF 96 when one had KOF 95
And why would you act like that isn't a legitimate question? I did buy KOF '96 despite owning '95 because I liked the new artwork and the gameplay changes, plus the arranged soundtrack was a huge upgrade over the chip tunes of '95. But it wasn't all better - the audio got worse without the ROM cart. And so when '97 came around, I asked myself once again "Do I need this?" and then the answer was "No", because the changes didn't interest me and there was no real sense of progress. I also skipped Street Fighter Alpha 2 because I already owned the first one.
"Who really needs the latest edition of fighting series X?" was a type of question often asked by reviewers and players at the time, and the games that didn't exhibit sufficient upgrades or new ideas were rightly criticized for being more of the same. Somewhere in the line of releases that included Virtua Fighter, Virtua Fighter Remix, Virtua Fighter 2, Virtua Fighter Kids, Fighting Vipers and Fighters Megamix, people were asking themselves that question, too - justifiedly.
Clearly many people bought a Saturn to play Capcom or SNK conversions. But I'm gonna go out on a limb and say just about nobody bought a Saturn in '98 to play The King of Fighters '97.
or why the need for rally cars and tracks in GT 2 when you already had rally games
As you like to say: "silly that". Rally cars or whatever can be welcome when they offer something either fresh or significantly better than before. Sega Touring Car didn't do any of that. Bug Too didn't do any of that. Worldwide Soccer '98 didn't do any of that, if I remember correctly.
Plenty of people buy classic conversions of games
We've just been over this at length. People in '97 weren't being motivated to buy a new console by 2D games. This goes double if the games were just straight conversions of Mega Drive games that were still rather fresh in their minds. Many people still had the original games and the machine to play them! We're talking about the people who were anxiously waiting for a new Sonic game, after all.
Fine and I could say the same when people like your chum

RetroGaming who bring up games like Tomb Raider, F1, GTA, Quake 2 and all that. One could just say I couldn't carless about Colin McRae, F1, TOCCA, FF7, MGS , Quake 2 Ect,ect on the PS1. I'll play them on the PC and with the PC, have by far the best version of Quake 1 and 2 the Tomb Raiders and also the best F1 game ever made with Geoff's F1 GP2 and a better port of F1 97 with more features...
The difference being that a PlayStation (or a Saturn) were suited just fine to playing Tomb Raider, GTA or those racing games. A console with a digital controller, on the other hand, wasn't ideal for controlling a modern first person shooter where you were using the mouse for looking up and down to aim.