> Were you surprised when folks settled on word processors in favor of markup?

I'm not sure what you're asking. "Word processor" was a term coming into prominence when Unix was in its infancy. Unix itself was sold to management partly on the promise of using it to make a word processor. All word processors used typewriters and were markup-based. Screens, which eventually enabled WYSIWYG, were not affordable for widespread use.

Perhaps the question you meant to ask was whether we were surprised when WYSIWYG took over word-processing for the masses. No, we weren't, but we weren't attracted to it either, because it sacrificed markup's potential for expressing the logical structure of documents and thus fostering portability of text among distinct physical forms, e.g. man pages on terminals and in book form or  technical papers as TMs and as journal articles. WYSIWYG was also unsuitable for typesetting math. (Microsoft Word clumsily diverts to a separate markup pane for math.) 

Moreover, WYSIWYG was out of sympathy with Unix philosophy, as it kept documents in a form difficult for other tools to process for unanticipated purposes, In this regard, I still regret that Luca Cardelli and Mark Manasse moved on from Bell Labs before they finished their dream of Blue, a WYSIWYG editor for markup documents, I don't know yet whether that blue-sky goal is achievable. (.docx may be seen as a ponderous latter-day attempt. Does anyone know whether it has fostered tool use?)

Doug