For me, 8-bit systems were:
1. What kids our age played for a couple of years before the Super Nintendo and Sega Mega Drive (US: Sega Genesis) came out.
2. Surplus stock sold at a discount because no one wanted last year's model.
My Atari XE didn't feel so cool anymore when I saw that my cousin's Nintendo had way better graphics and sound, and also, all the latest games.
I did eventually get a NES, but my parents didn't like the expensive cartridges, and the SNES came out soon thereafter.