If that is true, then isn't it also very possible that MS had an incentive to keep building on top of its cruddy file format without rethinking the design at any point? Isn't it true that even today, there is no viable competitor to MS Office even on non-Windows OS because MS has made file format compatibility extremely difficult?
I am very glad that the latest and greatest features of Office automation after (and including) Office 2007 were mostly still-born and we could stop worrying about this issue and use MS Office as a tool and not as a "platform". It became too unwieldy even for hardcore MS supporters, and even though no good alternatives emerged, people generally decided that the programmability of MS Office had reached its limits - and moved away to other things like replacing them with browser based apps [1] I remember creating an Infopath "app" as a contractor around 2010, and wondering "what is this crap? Have these people never seen browser based apps?"
[1] This is probably a sweeping statement. I would love to hear from someone who is certain that Office automation was a superior technology for a particular use case.