The disruptive aspect of it was supposed to be "freedom"
Actually no. The disruptive aspect was supposed to be price and pace of development. The assumption was that given Microsoft dominant position they would use it to raise prices sharply and grow revenue and margins not focus on almost monopolistic marketshare. In other words do on the desktop something much more similar to what they did on server. And then like server Linux would be a cheaper alternative.
Similar this low price strategy meant they didn't have to stratify. Microsoft's with XP was able to unifying their much more robust commercial OS (Win NT 4.0 / 2000) with their terrible home / small business OS (Win 95, 98, ME). They then were able to advance quickly in areas like programming languages (Visual Basic, C#) and create a robust and friendly development platform. They were more successful with web (IE 3.0, 4.0, 4.5)...
In other words in places where Microsoft could have tripped they didn't. Also there was a tendency to underestimate how far ahead Microsoft was on areas like Office Suites so even with FreeSoftware improving at 150-250% of the speed that Office was the number of years required to catch up and overtake was too high.
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Freedom was generally seen as a means to achieve collaboration and cooperation. It the server space it did. In the desktop space it did but even with collaboration and cooperation Microsoft still outpaced the FreeSoftware community.