I'm sorry, but you must have been frequenting a part of southern California that no one has ever heard of, because I can vouch that Killer Instinct drew insanely monster crowds there. Almost every arcade in Orange County, including Lake Forest, Mission Viejo, Irvine, Laguna Beach, Huntington Beach, Seal Beach, Fullerton, Santa Ana and Riverside had at least one Killer Instinct cabinet sucking up quarters like a vacuum. For many arcades in southern California, Killer Instinct was the sole reason they stayed in business as long as they did, attracting kids and adults from opening to closing. Because of the long lines to play it, people would spend money on other games, too, just to pass the time between turns at the cabinet.
At one point, Disneyland itself had four Killer Instinct machines, including one that connected to a giant screen, with upwards of over a hundred people crowded around to watch. This phenomenon prompted Knott's Berry Farm, Wild Rivers, Raging Waters and Six Flags to all get giant-screen Killer Instincts as well, which drew sizable crowds like no other game before it.
The loud, crystal-clear stereo sound effects and unique soundtrack, and the crowd-pleasing combo visuals that were approachable by any skill level were things that just hadn't been experienced before at arcades. And because most Killer Instinct cabinets had the volume turned way up, it became excessively addictive to crowds to hear things like "Kiiiiiiiiiiiiiiing Combooooooooo" and "C-c-c-c-combo Breakerrrrrrrrr" deafening the rest of the arcade.
There may have been "better" games before and since Killer Instinct, but you can't deny the impact it had in 1994 and 1995. It was the undisputed arcade king, especially in southern California.