Their distinguishing feature was that a "mountain bike" comes with gears (normal bikes don't), which was very popular. The city edition came with fenders, luggage racks, a nice bell, stand, etc.
Big fat tyres, comfy geometry. The tires usually had a slick strip in the middle and grooves on the sides so you had slicks running on pavement and got massive grip turning on gravel.
As it got cheaper, they even started having front suspension.
Looked kinda like this:
https://www.bolha.com/image-bigger/gorska-kolesa/mosko-gorsk...
https://www.velo.si/modules/uploader/uploads/s_product/pics_...
https://www.bolha.com/image-w920x690/mestna-kolesa/mestno-in...
Very similar to cycle cross (a wide range of gears) https://upload.wikimedia.org/wikipedia/commons/thumb/c/c7/Fo...
The hybrid has straight handlebars https://upload.wikimedia.org/wikipedia/commons/thumb/2/22/AE...
Mountain bikes, gravel bikes, are slow. Gearing is for climbing a mountain. https://upload.wikimedia.org/wikipedia/commons/thumb/1/1f/No...
Given the huge difference between the 2 I'm not sure what you mean? Also because these days 'mountain bike' is an umbrella term, whereas gravel bike is still rather specific. E.g. that last link shows already a rather specific segment of maountain bikes: dual suspension, quite a lot of travel on the front suspension, totally suited for going down the hill fast as well.
Many touring/adventure bikes will double as way better commuter than a road bike I feel. They are set up for comfort, long hours in the saddle, and usually have with luggage mounts.
I ride 40mm tires on my Long Haul Trucker.
My experience with 1-by drive is that the simplicity and (hopefully) fewer opportunities for derailment are totally worth it.
My all-road bike has 23 (30/34·26.5", 650bx45 wheels). I don't race.
Then for 20 years you couldn't really get a road bike with tires larger than 23 mm, which is totally illogical in places with less than perfect roads such as here in Canada.
Really happy that gravel bikes have brought back some sensibility to the sport, and that they provide a nice "all around" option in a market where manufacturers had been using "super specialization" of products to entice customers to buy more products.
Now I'm waiting for a similar trend to take over XC skiing!