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That’s how we got Clippy (essentially similar to the text input box proposed here), “progressive” menus that hide advanced actions and features the user hasn’t been accessing, as well as the explosion of task-oriented panels in Windows XP.You're implying those were bad decisions, but could you also explain what exactly was bad about them?
I think Clippy legitimately was a bad idea: It was a clumsy attempt at anthropomorphising the computer, and it also came over cartoonish and game-y: Effectively, used UI patterns from a video game in a context where users wanted to get serious work done. (Interestingly, it also foreshadowed a lot of later trends in tech: Clippy was asynchronous, interrupting the user with notifications even if the user never did anything; and it foreshadowed the ability of programs to actually analyze content and not just be dumb typewriters with the infamous "it looks like you are writing a letter" message. I guess Tech learned it's lesson from the backlash, namely that it needs to be more covert and subtle about those abilities...)
However, the idea to show possible actions in the context where they are useful always seemed like the most straightforward thing to me. Maybe i'm biased as a programmer, but it seems natural to structure an UI in an "object oriented" manner, where the user is presented with certain types of "entities" and can manipulate them using certain actions: E.g., if you have a file, you can copy, delete or move it; you can also launch a program to edit it. You can do the same with a folder, but you can additionally navigate into the folder, etc.
The same pattern in a lot of programs designed for creating media: The entities would be text selections in word processors, shapes and layers in image processors, 3D objects in 3D designers, etc.
That was the basic idea behind the task panels in WinXP I believe. So what was bad about them?