Were there even other browsers back in '98 other than I think Netscape? How else would you have been expected to download, or utilize, the Internet? If a core component is considered bloatware, something is wrong.
It got worse with Windows ME but yes I felt that Windows 98 had lots of stuff to be removed. I were impressed at first glance with Windows Memphis until I realized it was the same as Windows 95 and I started to explore different shells as alternative to explorer.exe and I believe it was Litestep with a simple skin I got my best performance from.. but as I, had a better experience in Linux (besides graphics resolution) which I hade newly explored I booted into Windows less, and less...
I remember being able to watch bootleg movies on a Windows 2000, while Windows 98 was too slow on the same hardware. I suspect that had nothing to do with bloatware, but rather some internal inefficiencies while dealing with heavy CPU/memory/IO load.
Hah! I remember watching the first Matrix as DivX on a P200MMX with a 14” Compaq CRT. I had to use a Dos movie player (without starting Windows), as in Windows 98 it was way too slow.
I call bullshit on your call. Don’t you remember active desktop? That was as bloated as anything and crashed all the time. People having a IE crash screen as their wallpaper and being clueless as to how to get rid of it, was hilarious.
To be fair, that wasn't 'on' by default, and it wasn't necessarily bloatware, as it's a small activex module/component. It's actually fairly light with how well it works from a code-base perspective! but, it's akin to malware more than anything since it's inception.