That is quite some hogwash. Ultima 4/6/7 are still a source of inspiration to game designers even today. Many features that were standard in these Ultima games still haven't been replicated to this day despite people wanting to achieve it. Sven himself holds Ultima 7 as the Holy Grail as to what he wants to achieve. The interactivity in D:OS1/2/BG3 was acknowledged by Sven as being based on Ultima 7. He wanted to include day/night cycles but they still haven't been able to. He wants to have proper schedules but also haven't been able to do it.
No competition? Really? Take late 91/1992 for instance - generally regarded as one of the most formative years in the history of gaming - Super Mario Land, Dune 2, Final Fantasy 5, Mortal Kombat, Contra III, Wolfenstien, Indiana Jones FoA, Alone in the Dark, Sonic, Legend of Zelda, Street Fighter 2, Prince of Persia - the list goes on and on. And guess what? Ultima 7 - the same year as all these titans of gaming