Let's see... all three games made significant leaps with said iteration.
VF3 for its time was a remarkable leap in graphics from the Model 2, considering it was 1996. DOA2 was a remarkable leap not only in graphics, but for expanding on the environments as well as the graphics. And Tekken 3 was a remarkable leap in gameplay mechanics... as well as a remarkable leap in the story's timeline.
I liked all three for unique reasons... yes, even Tekken 3. Some of you know where I stand with VF and DOA (very strongly for those curious), so I won't address that as much... but I have to admit, I gotta give Tekken 3 respect for what it accomplished as a solid game in its own right. Hell, they almost had me sold with Gon's inclusion in the PS1 version until I managed to snag Vampire Savior on the import Saturn for a trade. Not to mention it was the first Tekken game I played for almost a month... until Tekken 6 and Zafina.
Still, I have no doubt in my mind if this was Tekken 4 and DOA3.1 in the battlecast instead of the former, Tekken 4 wouldn't stand a chance, lol.