our problem was: none of the tools we needed were available in the quality and richness as they exist today.
automatic deployment to hundred of PCs at the same time with extensive automatic configuration? session and configuration management per user?
departments want to use different backgrounds per house or subdepartment. all that stuff had to be built in a scalable way.
the solutions today were not available back then.
As to your first problem, the lack of software, yes, it was a huge problem then. What we had to use at that time was substandard. I personally suffered (even though I love Linux on the server). Also KDE was unstable and a memory hog, Gnome wasn't much better, and you couldn't just buy more RAM. I'm very happy these days are over.