"the applications you're using won't then see a significant performance drop"
That was an era when most databases (dBase, Clipper, Paradox, FoxPro, Access...) run from a shared file somewhere.... just like in the pre-web era most shared data were available as shared files - even if the networks were slower. Most smallish file can hardly overload a 100Mb network, and even with a 10Mb one I don't remember big issues.
It is true one size doesn't fit all - but unless you had a backup agent on every PC it was the simplest solution. Scripts too can fail - and like roaming profiles happen only at given times.
Windows even introduced offline files, but that was a little minefield sometimes. Syncs, especially when different users can write to the same document, are complex.
Biting the hand that feeds IT
