Microsoft bob is actually like a lot of horrible software released in that time. I remember playing old windows 9x games highly reminiscent of MS Bob. I even have a disc with over "100 great windows games", if, anyone is interested in playing some...
I should give them to MW later.
Anyways, vector graphics are really nice! Especially due to the fact you can edit the shapes dynamically and layer them... opposed to stuck pixels.
A disadvantage to vector is that it can sometimes look a little funky when you blow it up too big, takes a fair amount of CPU, and the like... but these issues are too minuscule to be bothered by.
Powerpoint 97 also has vector graphics. I used to make 3D shapes and other vector stuff in there when I was a kid.