Yes, and the 80186 was a marketing disaster for any company that tried to
turn it into a PC. The integrated peripherals, while generally better than
same facilities present on the PC aren't the least compatible. The wrong
thing in a world dominated by hardware-manipulating applications, such as
games, graphics utilities, backup programs, etc. I still have the Durango
80186 IO.SYS source for MS-DOS 1.25, as well as the OEM docs for 2.0.
All of this was a shame, because an 80186-based PC offers a pretty
substantial bang for the buck; the few NEC V40-based systems faced pretty
much the same demise also. Yet, the 80186/88 found plenty of places
embedded in things like modems where it was very successful.
There is probably a fairly substantial list of "Almost PCs"--machines based
on the x86 architecture but not 100% software compatible with the PC.
IIRC the ICON computer used in Ontario, Canada schools was 80186 based...
Cheers,
Bryan