If memory serves, Win 98SE fixed many vanilla 98 problems before the love. Same with XP pre service packs; #1 fixed many stability issues, #2 fixed many back-compatibility issues(or vice-versa). Same comparison can be made about the Vista & 7(aka Vista SP7) releases. What also came with each new release was bloat, poorly implemented features(some initially, others perpetually) and phone-home functionality: XP=4, Vista=32, 7SP1>40. Win NT was the last OS MS created, it's been feature rich-er iterations ever since.
People freaking loved win98 once a few service packs got released, especially if they had the plus pack.
They didn't like Windows ME. Or Vista.