Horrible FMV Games

Why do you think there were a lot of point-and-click FMV games on the Sega CD. Many people think that the Sega CD was plagued by many of such games because the FMV was often grainy, and the system flopped because of the rather large number of FMV games.

I wonder why some developers (like Digital Pictures, etc.) kept using FMV in games even though the color pallete was limited to 64 colors onscreen and 512 available colors.

There were also some good games on Sega CD like Robo Aleste, Sonic CD, Popful Mail, Working Design games, etc., and they didn't have much (if any) FMV.

On the other hand, how do you think the Sega CD 8-voice PCM sound chip fares against the SNES SPC700 in terms of sound quality?
I'm pretty sure at least part of the reason for the FMV games was that it was the most obvious thing to do with all that space at the time. People probably got excited at the prospect of "realistic" graphics such that they forgot that realism is not the end goal of video games. Also, I'm pretty sure that the effective color palette was somehow increased in later games, possibly through clever use of shadow/highlight mode, or some other VDP feature that I forgot about.

As for the sound quality of the Genesis vs. SNES, I'm not really qualified to comment on that from a technical standpoint, not being much of an expert in sound synthesis (and not having heard output from an SNES in a year or so). From memory, I think the SNES sounded better, but that could be due to factors that vary between models of SNES and Genesis, or my memory might just suck :).