You can't do analog FM with DCOs because they're numerically controlled. You'd have to modulate the frequency of the clock, which displaces the problem without really solving it, and also wouldn't work polyphonically.

This Synclavier and Fairlight CMI were hybrid designs with a digitally controlled clock per voice producing a variable rate sample clock driving memory and a DAC. The hardware was more expensive but the digital part was much simpler, because you basically just clocked the sample data straight into the DAC without having to do any interpolation or resampling.

The DX7 was the first successful fixed rate polyphonic DSP system. With some reworking, the FM subsystem could have been replaced with sample RAM. But RAM was still ridiculously expensive, so FM was a workable solution for expressive acoustic-like sounds that weren't sampled.

It absolutely was a game changer. I remember playing one for the first time and it wasn't just the novelty of the FM sounds or the 16 - 16! - voices. It also looked great, was easy to carry, was less than a quarter of the price of some of the bigger polysynths, and had an extremely playable velocity-sensitive keyboard.

When you put all of those together it completely eclipsed the older designs as a playable keyboard instrument.