I am suggesting that it's easier to have a better story and better gameplay with more tech.
Gameplay, maybe (Re:Coded's was incredibly similar to BBS, they probably could have carbon copied it if they so chose), but a story has nothing to do with the tech. Maybe with how the story is presented (ie, voice acting, cutscenes), but to repeat myself, CoM was all text, but I think it has the best story in the entire series. I found the story in Re:CoM (full voice acting, cutscenes, the works) pretty much the same in terms of enjoyability as its GBA counterpart, despite being on a system several times more powerful.