I have a DC, and 'course it rocks. Hey, it's from Sega! <IMG SRC="smilies/wink.gif" border="0">
Right, some DC games are heavily sought after, but only by a small number of ppl who can appreciate the quality of the last round of releases (CvS2, Zero Gunner, Mars Martrix, SM2, etc.).
The majority of (casual) gamers decidet either to wait for the PS2, or to trade-in their DCs to get Sony's latest console. The promotion of the DC by Sega was crappy, too (Sega standard). The DC was dead as soon as the first companies started to cancel releases.
Although it was not the main reason behind Sega's decision to step back from their own hardware, I believe that the pirating of some DC games actually *did* some harm to Sega and their DC. At least some developers were not too amused about the fact that some DC games (despite the near-proprietary media format) showed up as Honk Kong copies one day before the game had been officially released.
Industry giants like Sony may be able to cope with that, but not Sega.