Interesting question, prompted me to go and look since the various iterations of 600 and 770 span that introduction of DVD drives and improving MPEGx acceleration. I recall that when we introduced T20's to the salesforce in one bank, the main point of interest was the DVD player capability!
Piecing together thinkwiki specs for the 600/e/x and video chipset specs from, e.g. here, it appears the 600 only had MPEG1 decoding acceleration (video CD) but the 600E (and presumably 600X) had a later iteration of the NeoMagic chipset supporting MPEG2 decoding acceleration, i.e. DVD. It's also notable that the DVD drive only became an option with the 600E, wasn't listed for the 600.
The 770 and 770E needed to be specced with the optional DVD and Enhanced Video Adapter daughterboard to support MPEG2/DVD playback as the Trident 9397 chipset couldn't do it, but the 770X/Z used the later Trident 9397DVD chipset which added... well, I think we can guess from the name
I wouldn't say the 770 was the end of the line, rather that it was an offshoot. It marked a departure from either the 700/720/75x/760 lineage or the parallel (and converging) 560/600/570/T20 line. Logically the 770's replacement was the A2x / A3x 3-spindle 'workstation' laptops. Superficially the packaging of the 770 ties in with the 'big thick block' approach of the 380 & 385... and of course 770 is 2x 385... there's a new conspiracy theory, right there