Nobody understands either Windoes SE OR ChromeOS. A whole OS dedicated around the old idea of the "falling away of the App" and making everything online is just dumb on its face.
Thirty years ago they told us that OLE would remove the difference between one application and another - that the line of where one ended and another began was a thing of the past, one big super-application that could do anything. That never materialized.
Twenty-five years ago OLE lead to OCX, which was going to change the way applications were delivered. Which lead to DDE, COM, ActiveX. I remember when the company I worked for decided to specialize in ActiveX and I tried to tell them what a dumb idea that was.
Then came others: CGI, XML, PHP... it's inevitable now... everything will become a web app. Smartphones came and we all had browsers in our hands. NOW! Now will be the day of the Falling-Away-of-the-Compiled-Application.
But then something strange happened. People found that they liked interacting with real apps better than interacting with web pages designed for mobile. All those mobile web apps tanked. Web stores that had dedicated mobile apps flourished, those that didn't never got traffic.
The Day of the Falling Away of the App is like the Year of the Linux Desktop. Always "real soon now", but never actually here, and if you look, getting further away with every failed attempt.
artificially add restrictions to Windows to make the environment less functional
You're absolutely right here. Spending money to develop an operating system, then spending more money to develop one that is inherently worse, is just stupidity on an unbounded scale. No "lite" app has ever been a money maker.
But then Chromebooks themselves are still dumb and will never amount to anything outside the school setting because that's the only place they are useful. They had a niche for a while in the restaurant scene for remote order taking, but even that died in favour of real apps.
Which is all a good thing, because the whole idea of the both Windows SE AND the Chromebook, the whole fucking point of them, is to take away capabilities. Step 1, give the user a platform that only works with web apps. Step 2, control what web apps they can use. Step 3, make them pay for every minute they spend on every one of them.