Tekken 3 is low-res, I ensure you. I've seen it on PSX-based arcade machines (basically, the PSX version reprogrammed to run with tokens), big screen, and there's no way a 640x480 game can be THAT jagged. Also it seems to runs at 30fps (maybe it runs at 60... but the PSX's "parkinson's syndrome" on ANY polygon movement kills the effect of smooth animation). VF2 runs much smoother on my eyes.
Of course, Tekken 3 is... 3, 4 maybe 5 years newer than VF2, and the PSX has more polygons, smoother lighting and transparency effects. Those should be taken in account while comparing graphics between different plataforms.
While Burning Rangers, as an example, might not look as good and smooth as many PSX games, it was on the Saturn, where polygons were more scarce, goraud shading was far more expensive to the CPU, and alpha-blending transparencies were no-existant. I think Sonic Team even used the "Grandia technique"(*) to make it run.
(*) The "Grandia technique", one of the reasons I find Grandia the most technically impressive game on the Saturn, consists in using the Saturn DSP processor (sound operations) to calculate 3D data for the graphics. That's why ALL of the game's music are pre-recorded, instead of real-time synthetized. Same for Burning Rangers.