IBM PCs started off far behind because they bruteforced the hell out of everything. The VIC-20 looked a lot better because it took a bunch of shortcuts and limited the things you could do with it so you could do those specific things really well with specific circuitry for stuff like sprites, but that brute force method ultimately ended up better because even though it was way less efficient per clock cycle, it also ultimately ended up more flexible so as CPUs got more powerful you could do things like Wolf 3d, Doom, and Quake that IBM never imagined.
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They made some design decisions that really hurt things with the CGA. Not being able to choose your colors besides a few different shitty preset palettes is one, the planar video stuff was another. With just a half dozen changes, CGA could have been top tier, but it clearly was not.