I think you forget the most important reason. MySQL was available for Win32, while PostgreSQL was not (until now). Remember that only a few years ago 99% of students learning to do websites had modem connection to the internet, and 99% of them did not use Linux on their desktop computer.
I honestly think this is the one single reason MySQL beat PGSQL. Those kids simply never got to even try PGSQL. I also think this same issue has played a major role in the popularity of many Linux desktop apps, and how ironic is that!
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