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#11
Last Known Good Configuration was very limited. It includes only a portion of the registry and is itself stored in the registry. It includes no files. But the biggest limitation is that the most recent configuration where bootup was successful and you were able to login becomes the Last Known Good Configuration. If you booted and logged in but the system was unstable it could not help you. You were already using the Last Known Good Configuration. And there was only one. That means it was really only useful if you were unable to boot.
System Restore is more flexible but it was not introduced in the NT platform until XP. In older systems it gave you chance of restoring operation without time consuming diagnostic or recovery procedures.
Windows 10 has something similar but I have never used it.