Yes I also remember it as pretty awesome! It had some normal windows fails, like the search in explorer searching through many file formats content instead of only just file names (which would be a reasonable default), thus being slow, needing to build a search index (doing heavy work in the background on its own, which is terrible) and making it super weird to navigate the results. And of course windows update, which was always enormously heavy and slow and required reboots. And of course hiding file extensions by default (I think they still do it. Who the fuck is so damn stupid to make this the default?! Heck, I wouldn't even allow this setting at all).

Thinking of it, these three little examples all stayed the same or got even much worse with later versions (updates!). E.g. in win10 the explorer search is still unusable but they managed to fuck up the start menu search as well (which worked well in win7).