Yes, the Dreamcast had some stellar ports of arcade 2D fighters (SFA3 comes to mind), not to mention the better-than-arcade Soul Calibur.
The biggest complaint I had about the DC though, was that controller!!! UGH!!! No wonder the DC wasn't used all that
much for serious tournament play.
The controller was not the reason the system wasnt used in serious tournament play, as to this day the MVC2 community in the US still uses dreamcast for tournaments as it is arcade perfect (or pretty damn close). The reason it wasn't used was because most of the ports were NOT arcade perfect or close to it.
The only ports that were used for tournaments are MVC2 and CVS2 (honestly can't remember if CVS1 was used). Soul Calibur was indeed stellar.