The C-64 was NOT better than anything. It was more economic than its competitors but not exactly bleeding edge.
Only two months after the C64 the Sinclair QL was released: For the same price you got 128k, an 68008/7Mhz, 512x200 graphics and two tape drives.
About power, the old Ataris and Apples were all a bit better, faster, more nifty. But they did cost a fortune in comparison to the C-64.
Honestly I didn't see much improvements in the first C-64 against my first PET2001/CBM3032. The C-64 had a slower CPU, a slower floppy, was less expandable and not much cheaper. Hell, the C-64 CPU was only half as fast as an Atari-800 and 50% slower than an VIC-20.
But you could get a complete System with floppy and printer for 1000 Euros in 1984. Noone could beat THAT.