When Win95 came on the scene, we were hesitant at first -- let others figure out the kinks -- but we were rolling out new desktops within 6 months. We had also been waiting for a Windows version of WordPerfect. The DOS version was ok, but it was awkward running it in Windows.
So we waited. And waited. And waited some more. Finally, after I don't know how long, we got our hands on WordPerfect 6.0 for Windows. It royally sucked. The WP folks had spent approximately zero time imagining their product in a Windows environment -- GUI, mouse click, that kind of thing -- and instead just pushed their F-commands into a menu system. It didn't flow at all, and our staff complained mightily.
So, we took a look at MS Office (I think it was version 4.x or something around then.) I didn't like MS Office, and knew we would have re-training issues (especially going from Quattro Pro to Excel). Nonetheless, we decided to give it a try.
Staff loved it. Not jumping-up-and-down loved it, just that it let them do their job quite easily. The analysts in our department raved over Excel, however. And personally, I could rid myself of Paradox, which seemed to dislike me more than others.
Summary: it's a small sample size, but from where I stood WordPerfect basically blew it. I can't speak to the MS/WP relationship, but I can without a doubt say that WP didn't put any thought into their product. Why they released their Windows version, I'll never know.
Was MS a tough competitor? Of course. Did they make it difficult on WP to provide their version on Windows? Maybe. But being completely unimaginative about the application and workflow? That's nobody but WordPerfect's fault.