Earlier quoted context omitted.
I wonder if Allen considered that there might be a reason people chose to use C, it's not as if they were forced into it. "Something where experts can really fine-tune without big bottlenecks" is not a requirement specific to operating systems. It's a bit ironic to think that the inability to run fancy optimizations is considered a problem with C when one of the most widely recognized flaws in the C ecosystem is the…
The same reason people got to choose JavaScript or PHP years later, the platform's adoption, in this case UNIX.
UNIX had very little to do with it, only very few people were lucky enough to have access to UNIX machines but untold 100's of thousands had access to PCs or 8 bit micros. The first time I saw a UNIX machine it was an Acorn 'Unicorn' and it was so far ahead of what I could afford that it might as well not exist.