A very good analysis. Thank you for this write up. Microsoft is a huge company with a huge user base. That ship takes a great deal to turn. While I loved Windows 11 with all the new features all at once, my parents still complain about it. I wonder if small changes are easier for the masses to swallow than large changes all at once.
It seems the fragmentation issue is also hitting Android? The smartphone manufacturers have to promise ever longer update schedules because people are staying with their devices much longer, because they still function well. Unlike in the beginning of smartphones, where hardware was slow to catch up to the software leaps. That isn't an issue anymore.
In both smartphones and computers, it's a natural expectation that when you replace the device, things are going to change and be new. To wake up to a bunch of new changes to an existing device is jarring to many people. (My daughter hated her latest android update) Computers are similar to other appliances like washing machines, or refrigerators. They can easily last 10-15 years or more. With computers lasting far longer than previous versions and now smartphones lasting far longer than they used to, Microsoft would be wise to adapt their software to this new hardware reality. Meet people where they are.