I think you're confused about a few things.
1. Windows does not
deny access to hardware. It simply abstracts it into a consistent interface, controlled by security privilege levels. All modern operating systems do this, including
every open source system, including Linux, FreeBSD, and many others. If you want direct access to the hardware, write a driver that interfaces with windows in its driver subsystem or
write your own OS kernel. Direct access to hardware by application programs threatens the stability of the system, and the security of the user's data. Imagine what could happen if any program could read raw data from the hard drive or intercept network traffic from the network adapter. It's would be stupid to permit that kind of activity from unprivileged applications.
2. Microsoft does not want to monopolize all PC software. Why would they offer development tools and publish their API documentation if that was their intent? Your argument is ridiculous and reeks of trolling.
3. Full screen mode is still available, although it's generally associated with DirectX and graphical applications, although a full screen text console could be made to work as a layer on top of DirectX.