You remember history incorrectly. The comparison at the time was between an Apple II and the new IBM computer. While the Apple II was inexpensive, had color and even a graphic screen and Visicalc... it did come with magic letters I B M on the box. As a non-distributed computing device, the Apple II was dominate in business and home markets. Even CP/M which was what Bill Gates knocked off to fulfill IBM's request for a computer OS for their Personal Computers wasn't all that popular.
What flipped the switch for most buyers at the time was that one box said Apple and the other said IBM. IBM was the gold standard in computing, it the box said IBM it could not be a bad buying decision, or so the thinking went.
It wasn't until chip sets for IBM knockoffs became available that the clone market erupted and price became a big deal. Since IBM had allowed Microsoft to sell the OS to other computer companies, the gates were open and the PC era began in earnest.
The Mac came to the party after it was already going strong and initially captured only a niche market in desktop publishing.
You left out the backwards engineering of BIOS, the key event in all of this. This was what enabled the flood gates (i.e. clone market) to open, and in turn make DOS (and later Wintel) the standard.
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Facinating article, I appreciate the link.
Buxton works at MSFT, obviously he can't be trusted!