Microsoft Office SharePoint Server 2007, or MOSS as it was known then, introduced the first true and quite proper development approach to SharePoint. This vehicle became known as SharePoint solution packages, that packaged our native .NET code to files with a .WSP extension.
This was also known as the full-trust code, as all code you wrote, packaged, deployed and used would run as fully trusted within SharePoint's memory space. A poor developer could easily write horribly sloppy code that iterated through hundreds of SharePoint sites recursively, then iterated through each list and document library and changed something in one or two of the document libraries. This would then be embedded in a web part, that is a building block that acts as a widget on a SharePoint page. Initially, the developer might have tested this on his or her laptop, and everything could have executed flawlessly. Change this to a production environment, with possibly hundreds or thousands of people loading the very same page, and you quickly run into all sorts of unforeseen performance issues.
Full-trust code initially did not have proper support within Visual Studio at the time, so developers would build custom tooling to compile, define, and package the deployment packages. Deployment would also be part of custom scripts and tooling executed locally on one or more SharePoint servers. Debugging would then occur on a separate server and would often be time-consuming and error-prone.
Solutions would be crafted around Features, which acted as a kind of lights on/lights off containment model for SharePoint artifacts. One or more Features would be packaged within a SharePoint solution package (the .WSP file) and uploaded to SharePoint's database for deployment. Each Feature would consist of at least one XML file introducing the deployment logic, and each solution package would consist of exactly one manifest file that held everything together. Combine this with possibly multiple solution packages per the overall solution and you often had a time-sensitive and highly detailed deployment script that needed to be executed just so, in the hope that everything would work.
What's important to realize is that MOSS 2007 gave us the Feature framework and the Solution framework. Much of the development between SharePoint versions 2007 and 2010 was tinkering and fiddling with XML file structures, essentially describing in pre-defined XML structures how a certain feature might act within SharePoint. Here and there developers could inject a little bit of HTML, combined with JavaScript, CSS and, if lucky, possibly also some C# code. We still remember countless meetings and review discussions with talented developers who swore never to work with SharePoint again, as it was not real coding, but would rather modify cumbersome XML structures that at times were poorly documented and lacked a strongly typed approach.
You wouldn't have compile-time error handling, and deployment to SharePoint might have taken 10 or 15 minutes for each try.
SharePoint solution packages (and Features) are still supported for all SharePoint versions from 2007, 2010 and 2013 to 2016. It's not advisable to continue building solution packages but, at times, a transformation from a legacy solution might be required. It should also be clear without saying, but just to be clear solution packages are not supported in SharePoint Online. As such, developers aiming to build cloud-supported solutions for SharePoint Online, should not build solution packages or solutions using the Feature framework.