Yes, that's because a CD manufacturing cost 10 cents, while a cartridge manufacturing was $50, plus due to the size of the cartridge (max 64 MB / 512 Mb, but increases a lot the manufacturing price), game designers didn't really have space for placing textures in order to make longer games, not only that but that cut the capability of using Hi-Res textures, so many game developers left Nintendo. I am surely Nintendo choose the cartridge just for Piracy, there wasn't other reasons, because they were in developement for media CD with Philips (Philips CDi)
Don't get me wrong, I am not making look wrong neither Nintendo or it's N64, remember "useless feature", useless means it never has a use, however it doesn't directly means it's not worth or crappy.
--------------------------------------------------------------------
Sorry I was just giving a CPU example with the X-Box 360 and the N64, let's better get back to the thread.