As far as I could tell, the Technology was not refined enough to replace what was already out.
CD-ROMs were slow and the systems that relied on them lagged big time. This is why Nintendo didn’t go to that media while others were jumping on the band wagon.
Also the technology didn't mesh well IMHO. The IR controller for the DV-I and the CDTV were also terrible for response time.
The only multimedia aspect that I see making a big step was Laser Disc Cabinets like Dragon's Lair and the like. But even those had lag times for loading one clip to the next.