lukaszthegreat: buhahahaaha! me? fanboy? of Msoft?
you really don't get it. Windows, OSX, Linux, whatever. reread OPs post. What if we run dos! DOS.
Upon rereading it, I think you're right that I misread it. The internet provides way too little in the way of context if you miss a portion of post or get the reference wrong.
Although, most of what you posted was in my opinion wrong. But, as that requires time machine games, it's hard to say how things would have gone.
There have been web browsers without need for a windowing system. And with the advent of higher resolution displays, there's no reason why we couldn't be watching youtube and the web from DOS, other than the fact that they moved to Windows rather than updating DOS to either 32 or 64 bits.
And few people used incompatible versions of DOS for any sort of serious work, usually that was a vendor supplied boot disk as it didn't need to be completely compatible, just in the areas that count.