Well here it is, Why we got stuck with the stuckiest companies in the world that bombed us to the dark ages of computers for decades and may have helped start the end of human civilization on planet earth.
So why did IBM chose the 8-bit 8088 (1979) version of the 8086 for the IBM 5150 PC (1981) when most of the alternatives were so much better? Apparently IBM's own engineers wanted to use the 68000, and it was used later in the forgotten IBM Instruments 9000 Laboratory Computer, but IBM already had rights to manufacture the 8086, in exchange for giving Intel the rights to its bubble memory designs. Apparently IBM was using 8086s in the IBM Displaywriter word processor.
Other factors were the fact that the the 8-bit 8088 could use existing low cost 8085-type components, and allowed the computer to be based on a modified 8085 design. 68000 components were not widely available, though it could use 6800 components to an extent. After the failure and expense of the IBM 5100 (1974/5/6? - their first attempt at a peronal computer - discrete random logic CPU with no bus, built in BASIC and APL as the OS), cost was a large factor in the design of the PC.
The availability of CP/M-86 is also likely a factor, since CP/M was the operating system standard for the computer industry at the time. However Digital Research founder Gary Kildall was unhappy with the legal demands of IBM, so Microsoft, a programming language company, was hired instead to provide the operating system (initially known at varying times as QDOS, SCP-DOS, and finally 86-DOS, it was purchased by Microsoft from Seattle Computer Products (For around 50,000 US$) and renamed MS-DOS (and sold to IBM for over $1,000,000 plus royalties ).
Digital Research did eventually produce CP/M 68K for the 68000 series, making the operating system choice less relevant than other factors.
Intel bubble memory was on the market for a while, but faded away as better and cheaper memory technologies arrived.
*www.microprocessor.sscc.ru/great/s3.html#8086