I wonder if the appeal in this regard may be similar to that of Bofuri, which also has a premise wherein the main character is ridiculously overpowered. In Bofuri, this is played for laughs, with the main character gaining an increasing collection of ridiculously overpowered abilities and everyone else generally going “WTF” at this.
Yeah, N64/PS1 era was when the industry started pushing 3D games hard, and it really feels like the beginning of the modern era to me too.