I've a system that plays Sega CD games. The one I've probably spent the most time with is Panic!. I got the C&C disc with the system, and I'd have to agree with you. the idea was good but the execution really needed work.
It's a shame the Penn and Teller game never got a legit release.
One of the problems with a "game" like this is that the content is just way too limited. There are only so many low res video clips and so much music you can fit on a cd.