Agree 100% (except the Dreamcast did have good games), backwards compatibility would have been a huge help for the Saturn. I'd argue it's the system that lost the most from not having it. For one, the Saturn launched the year before the N64, and backwards compatibility helps consoles the most early in their lives, before the new console's game library builds up and the old generation gets too outdated. Certainly with the 16-bit generation still being very current in 1995 and the Saturn's early lineup lacking, these older games could have been an important bulwark for the system until better games came along after programmers started to figure out the system from 1996 on.
Genesis compatibility would have helped immensely, but even just Sega CD compatibility would have been a lot of benefit.