20+ years ago, BSD lost to Linux, not because of the AT&T lawsuit, but for these reasons:
The BSD community was/is an essentially closed community of elitist developers who no one else wants to work with, whereas Linux was friendly and open to anyone who wanted to try.
The BSD community clearly did/does not care about silly things like usability and desktop environments, whereas the Linux community knew what needed to be done in this area and built one or more too many desktops.
The BSD community did not think it was important to write drivers to support all the PC hardware options, whereas Linux did this. BSD might have improved somewhat in this area.
This is all unfortunate because core of the BSD systems is quite good and well organized.
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20+ years ago, BSD lost to Linux, not because of the AT&T lawsuit, but for these reasons: