It was much easier to pirate games on the Dreamcast - the copy protection was broken to the degree that you could burn a game to a CD-R and have it Just Work without modifying the console in any way. It being both a total piracy free-for-all and also a catastrophic commercial failure doesn't seem to fit what you're saying.

Not to say that easy piracy is necessarily a death sentence for a console, the DS succeeded in spite of ubiquitous and cheap flashcarts, but the Dreamcast shows it's not necessarily a path to success either. There are just more pertinent reasons for a system to sink or swim.