> The web itself could have been killed in the cradle on day one.
The web is such a killer app, that if MS blocked it, it would be a problem for MS, not the web, imho.
Also IANAL, but given that MS launched a competing service - The Microsoft Network - this seems like a huge anti-trust issue.
https://en.wikipedia.org/wiki/MSN_Dial-up
The combination of consumer demand for web access + anti-trust would probably crush MS, and it would have to provide access.
Another factor is that Windows was always a target for hackers, so it's virtually certain there'd be some jailbreaking solution that everyone would use if MS started blocking access to killer apps like web access.
MS was a near monopoly, but there were enough exceptions that people were aware how amazing the web is.
Finally, if MS took the Walled Garden approach, it's easy to argue it wouldn't be the monopoly it was. MS benefited immensely from its platform being "free" (as in pirated) and "open" (as in hackable and insecure).
There was a company who took the other approach. Its name is Apple and it wasn't doing too well against MS in 1995.