I'm not disagreeing with your basic take, but I think this part is a little more subtle.
I'd argue that 80% of users (by raw user count) do want roughly the same 20% of functionality, most of the time.
The problem in FOSS is that average user in the FOSS ecosystem is not remotely close to the profile of that 80%. The average FOSS user is part of the 1% of power users. They actively want something different and don't even understand the mindset of the other 80% of users.
When someone comes along to a FOSS project and honestly tries to rebuild it for the 80% of users, they often end up getting a lot of hate from the established FOSS community because they just have totally different needs. It's like they don't even speak the same language.