Launching any non-trivial application also took terribly long. Not just the Office, but even Firefox felt more like Photoshop. I couldn't believe how bloated the software had become.
These $100 machines you're talking about can't run normal software, you'll need Microsoft to start selling Win98 or you'd need a stripped-down Linux with XFCE or something. The key to performance IMO is smaller binary sizes: those CPUs had tiny caches and pathetic memory throughput. Pentiums ran on 33-66Mz FSB, compare it to 1066Mz of modern machines.