I know that one of the major reasons Linux lagged behind Windows and Macintosh in the 1990s was because they had desktop environments while Linux only had a command-line interface, which made it unappealing to users who weren't particularly tech-savvy. People were generally willing to pay for software if it meant they didn't have to spend a lot of time learning to use it.
I believe the first Linux desktop environments came out circa 2000. I think those were Mandrake and some early version of GNOME. But I'm not sure when dev teams started incorporating them into distributions by default.
I believe (though I could be wrong about this) that the first version of Ubuntu had a desktop environment installed by default, and that came out in 2004. But I have no idea if Ubuntu was the first.
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