It’s true that they’ve made some progress but my work laptop running Windows 11 still has UI elements from Windows 95/NT 4. The file system hasn’t improved since then and the keyboard responsiveness is actually worse. BeOS on 90s hardware absolutely torches Windows 11 on things like UI responsiveness, ability to multitask without degrading UI performance, and the file system (not networking, of course, it wasn’t perfect).
I think it’s fair to question whether the decisions around backwards compatibility have been worth the cost but I’d imagine they’re already doing that. Enterprise IT departments love Windows but nobody else does, and the generation of people who grew up using iOS/Android and macOS/ChromeOS for school aren’t going to jump at the chance to bring that enterprise IT experience into their personal lives.