That's what it was, mostly.
You could do pretty decent games using GDI as long as you just wanted to blit some sprites and were very much adhering to what GDI would give you. If I remember correctly, all the examples in the "GameSDK sampler CD-ROM" (the original name of DirectX 1.0) were in fact not done with GameSDK or even with WinG, but straight GDI.