Interesting times. You got so much more for your money back then.
I'm not so sure thats necessarily always true outside of computer enthusiasts. Remember that these sort of PC's (like the one in the advert) were often aimed more as 'family' PC's for more general use.
My first computer was a Escom computer (remember them?)
They sold me what was claimed to be a Pentium 100 based PC (which I later found was actually only a P90) and it cost well over a £1,000 at the time (late 1990's i beleive)
Problem was you could not really buy a much cheaper PC at all (new) at the time like you can now.
Even a basic PC in the 1990's cost big £££'s.
Now a few hundred pounds buys you a complete basic PC and a couple of hundred pounds buys you a basic laptop when twenty years ago you would not often get that much change out of a thousand pounds for any new laptop.
What has changed it that the price of top end hardware has massively increased. Top end GPU's used to be more like £200-£300 with the Voodoo 2 launching at $249 (i know you also needed a 2d card to go with it) and the TNT2 ultra for $299.
Basic/ general computing has become far more of a cheap commodity now. With far more options available for consumers (including much more expensive ones at the top)