I think the problem with Dragon's Lair is that even if Don Bluth's animation is frenetic and charismatic (even on the Sega CD with its limited color pallete on FMVs), his team was not experienced enough to handle the dynamism of a videogame and as such it results in a lot of continuity errors between cuts (objects disappearing or behaving differently after the scene continues if you input correctly) that end up being quite distracting and it gives off too much visual information to process.

Yes, reaction times are very short and there's a lot of logical jumps due to trial and error and mischevous elements which are an annoyance of Arcade design to munch coins, but I'm more thinking of the moments where you are supposed to press a direction with an akward camera angle and you end up repeating the same scene over and over again just guessing what you are supposed to press (and often times the character moves diagonally in the animation, which makes me frustrated that my first try in that general direction didn't register)