But I have the distinct recollection of it being excruciating for multitasking. Towards the end of Windows 98's life you might ask it to run a video player, a game, a chat client, a browser and a word processor all at once. Stability disappeared. So did responsiveness. Windows 2000 (or Linux) handled heavy load much better.
When it came up was probably the first time in a decade or more that I'd heard the click/buzz of a floppy drive in person.
I was a developer so cared more about performance and stability. How my code editor windows looked didn't matter. Memory being taken up by a fatter UI implementation that slows things down counts against it.
Edit: and yes, win2k/NT4 was less stable. They moved the graphics subsystem into kernel space where as NT up to 3.5.1 had graphics as a separate service. And you can imagine that a lot of the bugs/edge cases in Windows is in the GUI and drivers.