Yes Microsoft Office was already dominant. Why didn't libre office affect this dominance being 'so good'? It's also free, so it should be interesting to companies, right? Wrong. I recently set up an SME who when saw it ran away and immediately bought a Microsoft license, which means they would rather pay and be spied on than use libre office.
Believe it or not, people like nice things. Microsoft Office looks nice. Libre office looks like a car accident. It's shallow, I know, but this is the response I get every time.
Everyone I know hates it. It is a small sample, true, but it says something. So I think, the fact Microsoft is so strong is to be blamed on the alternatives, or in this case only one alternative.
We need to look at this as
https://en.wikipedia.org/wiki/Survivorship_bias
Turn it around. If it would be good, people would jump on it. Especially small companies.
Google workspace is a web app, no? So it being better than desktop is comparing different things. I use it and I like it, especially since I don't need advanced Features Microsoft offers
We have no good alternative. We have an alternative.