When I was a kid, the first "special" Lego kit I remember was the Star Wars sets in 1983 (and especially that everybody wanted a Millenium Falcon but I didn't know anybody who had parents that could afford one!)

Apart from those Star Wars kits, everything I had were generic blocks and strips (not sure what they're called, the ones that are 1/3 the height of a block) and some different designs of people. The closest I had to previous special sets was a town thing that my brother and sister had before me (they were 10 years older), which was a bunch of large floor tiles with roads and grassy areas with studs, some flowers pieces (single stud) and a handful of special buildings. But they were designed to be relatively generic, and the fun was using those building blocks to make a new city each time, not trying to recreate exactly someone's model. Apart from the flowers and the men, basically everything was a standard part, except perhaps a different colour.

When I was a teenager, the trend had become sets with lots of specialised parts for one specific model, such that they didn't really make sense as generic pieces. I enjoyed the technics kits because the early ones were just generic building blocks (apart from the wheels and rack and pinion, but again they could be re-used in lots of subsequent designs), but more and more the kits in the shops were for specialised models with unique pieces that were never designed to fit aesthetically with anything other than the model they came with. I'm sure _some_ people built other things with them, but equally I'd bet than probably 90% of those kits were built exactly once following the instructions and then never disassembled again.

The elements that are 1/3 the height of a brick is a plate if it has studs, and a tile if it does not.

Lego did not have Star Wars sets until 1998. The original Lego Millenium Falcon set 4504 would have retailed for right around $100. Which was high, but just as high as the bigger Castle sets at the time.