A basic phone blows away the early computers. 40mhz one core cpus (spark, mips, 80486...) used to do a lot of work and be fast. What has changed is bloat.
We also seem to have picked up a few features along the way. Rendering screen resolutions beyond 640x480, network speeds above 9600 baud, video, displaying images that each would fill one of the hard drives of that age, video and music editing, running programs that were unthinkable in terms of features set. Clearly, inefficiencies have crept in, but it’s not as if the software today wasn’t way more capable than what we had at that time.
We often had 100baseT and it was quite snappy for text heavy coms and reasonably sized images from the net. 9600 was already faster than you can read, this was an order of magnitude faster. Quake deathmatch was incredible, I remember getting almost twenty folks on a server once. :D
At some point I procured a 1600x1200 monitor… but not until a later job after 2k with an SGI was my computer able to handle that resolution comfortably.
People also used to write novels on pen and paper, later typewriters, then word processors. What we have now is far, far better in every conceivable way.
I think nostalgia gives rise colored glasses when if you were to put these things side by side you’d never actually go back.
I remember when I got a 1080p monitor and watched some slightly old content (~480p) on it. The experience was very lackluster. Now I'm getting a similar feeling with a recently-bought 4k-capable laptop, and watching 720p content that looked perfectly fine on the 1080p monitor. I don't even want to think about the 480p archives. Almost makes me not want to upgrade devices.
PS. I quite distinctly remember the point in time when I finally said my then desktop machine couldn't move video, and it really was time to consider an upgrade ...
(My 500 Mhz K6 II - DAE remember those AMD chips? - had finally become too slow. Video was 'unstoppable' ...