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Well, the people who would say that are not very aware of the history of the field they are in then. The most popular text MUDs have been commercial since MUD I went commercial in 1984, as Kavir mentioned.
MUDs accessible via telnet were an invention part-way through the history of MUDs. Many text MUDs were available only via services like CompuServe or the pre-internet AOL. No telnetting there. Heck, I was the first internet customer of a commercial text MUD called Avalon (started in 1989) in 1994, as they had been dial-up only (in England) up until that point.
You're right about Everquest, WoW, etc just being a graphical MUD though. No real fundamental difference.
--matt
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