I’ve made similar comments in the past but I think we’re just trying to predict too much about what programs are trying to do in hardware. I’d rather have simple hardware that is light on energy requirements and easier to understand. I don’t think software as an industry really has a “this chip isn’t fast enough problem”. Most of the real slowdowns anyone has in day to day performance has more to do with inefficient…
You're oversimplifying the situation and drawing conclusions from it. The PSX had dedicated hardware for geometry transforms, video decoding, sound processing, and rasterizing. The CPU was used for game logic and queuing up the render pipeline. So it's not like all PlayStation developers were doing black magic in every game, they were using a lot of dedicated hardware with well known and relatively modest and fixed constraints (NTSC/PAL, stereo audio, and relatively small frame buffers).
It's interesting you picked the PSX as your exemplar because it's CPU/GPU/MDEC and audio processor were meant to be black boxes so developers didn't have to code to bare metal. The IO stack was much shorter and the OS (such as it was) was single tasking, single threaded, and didn't have any networking.
Slowdowns in modern systems are much more complicated that a simplistic "inefficient code makes them slow". There's hundreds of small stupid latencies all over the place in modern systems. The USB and Bluetooth stacks are filled with little latencies, retransmissions, and just wait loops. Unless your inefficient code is full of accidentally quadratic loops it's usually compounded latencies making systems "feel slow".