It's not that Linux isn't ready in my opinion. It's that people expect it to be what they already have. When I started Linux, I didn't compare; I started from scratch and appreciated it.
People want MS Office on Linux. They shouldn't want that. They should use OpenOffice or another free suite, not try to get their own stuff working.
People want MSN, not pidgin. Note: It's Linux, not Windows.
"Linux sucks cause it can't play games". No, it just doesn't run the games you want it to. Just don't use Linux.
My point being is that it isn't really a problem with Linux. The problem is that people don't want to change away from the software and such that they know. If more people stopped trying to compare, and learn to do things the "Linux way", I think there'd be much less frustration with new users.
It isn't Windows. If you want to do everything that you do the same way as on Windows, don't switch to another OS.
Linux is fully capable of taking off in the market. It's just that people "need" their current apps/programs to work, when they shouldn't. In some cases, yes, commercial software that's Windows-only is a must. But when it comes to stuff as simple as "I need to make Word documents, so I can't switch to Linux" it's just silly.
Edit: This goes for *BSD and Solaris as well.
Edit2: This is why Mac OS X is popular these days. It's more compatible than it has been for a long time now. People can do the exact same thing as they can on Windows, meaning they'll adopt it. If MS released Office 2010 on Linux, or Adobe released Photoshop, etc, the same would happen.
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