This betting wrong on specialization happened over and over again in the late 70s and 80s. The wave of improvements and price reduction in commodity PC hardware was insane, especially from the late 80s onwards. From Lisp machines to specialized graphics/CAD workstations, to "home computer" microcomputer systems, they all were buried because they mistakenly bet against Moore's law and economies of scale.
In 91 I was a dedicated Atari ST user convinced of the superiority of the 68k architecture, running a UUCP node off my hacked up ST. By the end of 92 I had a grey-box 486 running early releases of Linux and that was that. I used to fantasize over the photos and screenshots of workstations in the pages of UnixWorld and similar magazines... But then I could just dress my cheap 486 up to act like one and it was great.
Atari ST and Intel PC are not distant categories. Both are "'home computer microcomputer' systems". Not all home computer systems can win, just like not all browsers can win, not all spreadsheets can win, not all ways of hooking up keyboards and mice to computers can win, ...
In 91 I was a dedicated Atari ST user convinced of the superiority of the 68k architecture, running a UUCP node off my hacked up ST. By the end of 92 I had a grey-box 486 running early releases of Linux and that was that. I used to fantasize over the photos and screenshots of workstations in the pages of UnixWorld and similar magazines... But then I could just dress my cheap 486 up to act like one and it was great.