I remember using (sharing!) an XT (8088? 8086???) at work in 1985. One good thing about the 386 in 1986 was that it made the price of 286 (AT/clone) systems come down. I almost never saw an XT after 1986. We started seeing quite a few more clones (Compaq, etc) about that time, as well.
Which is of course a big tangent off of "why/whence command.com & .BAT files" :-)
OS/2 and Windows were a big deal in virtualizing memory use in PC land, with widespread Linux use still "a few years" in the future. (and effective adoption of NextStep even further out)