CD AGES:
60FPS Code: At the 'Press Start Screen', enter Up-A-Down-Down-Left-Right-B-B-Down (do not use this by itself)
30FPS Code: At the 'Press Start Screen', enter Up-A-Down-Down-Left-Right-B-B-Up
A noise will sound if you have entered the codes correctly.
I think the Model 3, while less powerful than the Dreamcast, had quite a few graphical tricks that even NAOMI 1 and the original XBOX console couldn't do. I remember with Outrun 2 XBOX the developer stated they were not able to put in all the animation effects on the Daytona USA 2 course. You're right about Sega Bass though and Sega Rally 2 using Windows CE. Virtua Figher 3tb was also rushed IMO. VOOT I can't comment on but the upgraded coin-op version was released on NAOMI so possibly some sharing of resources there?
Here's a clip of the Daytona USA 2 course from the JPN XBOX version of Outrun 2 and a direct recording from the arcade machine. You'll notice the arcade version has a great big red skeleton in the middle of the course, bats by the haunted house and people on the rollercoaster.
[youtube]http://www.youtube.com/watch?v=Nc_yhgPRMfE[/youtube]
[youtube]http://www.youtube.com/watch?v=AOCjFIZuMe4[/youtube]
The latter clip actually got me into playing Daytona USA 2 seriously. I had won a competition on the game in late '99 but back then it was only for the money!