Some of that was logistics of the tech and people not liking the idea.
We already run quite a bit of our programs in the cloud as it is, that's halfway to this already. MS has already demonstrated a lack of enthusiasm for Windows, especially on the desktop, as it is. For crying out loud, they actually have an in house Linux OS of their own to run off their other services. They can't even get their "flagship" mainstream OS without issue and working on a separate OS as as well. And since it's internal, that Linux OS of theirs would have to have an internal QA team, which Windows does not have anymore (hence a big reason why I don't think they care as much about Windows as much as it was when Gates was in charge). MS Office (like it or not), which was their bread and butter as far as desktop applications goes, is now essentially online only. I would imagine that if they were to have it as a desktop app now, it would be an Electron app from here on out (Teams, VSCode are that way now as it is, I wonder when it will be with VS as well).
All roads point to this more and more.
Hell, I would imagine more and more programs will actually be Webview programs (or Webview2 programs on Windows) where it's just a window that more then likely points to a website that everyone does their work from (much lighter in terms of storage space and RAM usage compared to Electron as well). When I was creating Go programs, with everything embedded (the server code, the HTML/CSS/JS/WASM(binary code for browsers), depending on the program it was 100MB to 200MB of RAM and 9MB binary size (that's with everything embedded into one binary even with debug symbols still in binary). I would imagine that would be smaller for those that just point to an external webpage and take out the debug symbols.
Now, that 200MBs of RAM was for an audio program that handled streamed content as well as local audio files (reason why I have server code in there to get around CORs and to run WASM as well). After a few hours of just running the program (either streaming internet radio or local files), it would creep up to about 230 MBs of RAM. I change the file or change the internet station, it would go back down to 180MBs and go from there. Using something like VLC, any heavy use within an hour, it gets up to 800MB of RAM (and doesn't come down when changing files (I would imagine memory leak) and it's somewhere around 40 to 100MB binary size on Windows. Significantly more then the binary size of a webview app.
Now part of the reason why Webview apps have less memory consumption then just doing the browser route is that the browser has a lot of other features (bookmark capabilities, address bar, addon abilities that are installed and running and amount of tabs running in an instance etc) that webview does not have. I do like webview apps, but I like them with everything embedded in them and are able to run offline.