I think it was literally lack of imagination. We were like "well, I automated most of the paper pushing we used to do in the office, guess my job is done!" and this occupied 0.001% of a computer's time. We invented all sorts of ways for people to only pay for that tiny slice of active time (serverless, async web frameworks, etc).
Now we're in an era where we can actually use the computers we've built. I don't think we're going back