You have to understand the politics of the time. The prevailing opinion was that people wanted arcade style hardware in a home console. Many of the hottest arcade games at the time were 3D, and it was considered novel and exciting. Many 2D titles didn't even make it past the software approval process with SCEA and SOA because of this. I was neck-deep in the 32-bit wars, and was still content with 2D. The Sega Saturn is still my favorite console of all time. But ultimately I was in the minority (albeit a very vocal and passionate minority).
SotN supposedly bombed in Europe where it was savaged by the press for looking "dated". The US press was a lot kinder, but then you had publications like Next Generation that were blatantly bias against anything that didn't have the best looking polygons ever (Next Gen's reviews were always shit, but their interviews and other articles were pretty good...and they gave a shockingly good review for SotN). It's very fortunate that enough people saw SotN for its true beauty and word got around. That's probably one of the major reasons why Konami can still count on a big US market for Castlevania.
- John