As far as developer productivity, the desktop-oriented IDE's were indeed better. Yes, you had less choice, but that didn't matter much if tried to think like a plumber instead of Picasso. The problem was that deployment and installation was a pain. Microsoft actually improved that for its products, but I believe if we had a stateful GUI markup standard, we could have very similar tools without desktop installs (other than installing a GUI browser).
Oracle Forms kind of worked like this (mostly before Java era), although its GUI control language was proprietary and not XML. Oracle Forms had its warts, but was a good proof concept for the GUI browser. Developers got a lot of work done under it.