Sure , we would have had better support for commercial consumer apps and drivers etc.
But basically the situation would have become more like android, instead of people getting their distributions from debian or redhat every PC manufacturer would have created their own distro.
So you would have Dell Linux , HP Linux , hell maybe even Microsoft Linux.
Of course they would all have crap pre-installed from the vendor approved repos which would carry whatever software the vendor had struck a deal with, probably no GCC etc.
Fragmentation would also be an utter nightmare with many app vendors only supporting their apps on the most commonly used distros and home made PCs would have to run some "white label" type distro like debian which would have all the problems it does today.