Drivers, drivers, drivers. If we had Dells and HPs preinstalled with linux, with a nice customized distro CD, people would have little to no incentive to prefer XP or OSX.
The way things are now is a loop:
Users don't want linux because they are (in my opinion rightly) intimidated by setup/configuration/compatibility issues.
Linux developers cannot improve the PnP efficiency of their distros because they are not assisted by the actual hardware producers. They always lag behind, and features well established in win boxes like direct rendering, wireless and acpi configuration become an unpredictable mess in linux.
Big vendors like Dell or HP aren't interested in making linux-friendly machines or at least helping the oss developers because there aren't many people demanding it. Geeks build their own boxes, and average computer literates simply don't know/ don't want linux.
And so it goes. I don't anticipate people spontaneously flocking in droves to linux anytime soon, or the oss community to become do better than what they're already doing, so I'm hoping the cycle will be broken at some point by a vendor willing to risk throwing its weight behind a linux distro, marketing home user laptops/desktops with linux preloaded.
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