No, but it had 60k of accessible RAM and could display 128 colours onscreen. The c64 had less than 40k of usable RAM and 16 colours so it's a fair trade.
edit: Faster CPU, serial port and floppy drive too.
Yeah, there are quite a few demos that use them.
The extra ram was due to the plus4 bankswitching when accessing code and data behind the roms, the C64 could have done that too. IIRC there were some cartridges that did it, you could probably hack the BASIC rom as well.
The C64 had a drive available that was better than a 1551 (
http://www.c64-wiki.com/index.php/SFD-1001) the sales figures for both are unlikely to be very exciting.
The serial port was good, but for the majority it was unused and you could add one to the c64 anyway.
For the target business market the TED was probably ok, but the lack of sprites and the poor sound really destroyed it in the games market. They could have added a SID chip, which would have free'd up space for doing sprites on TED. But the whole point of TED was to fit sound and graphics in one chip.
I think the real mistake CBM made was that they still didn't have a better graphics chip available for the C128. An 80 column VIC would have been pretty awesome.