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You should have provided ways/areas wherein Linux exceeds Windows or should exceed Windows. It's one thing to yell, "we should be better!" it's (as my Dad would say) a far-nuther thing to provide examples. Windows has such a lock on what you must bring to the table for the consumer, that you in essence have to copy them in order to be visible in the same space. Look at OS X. It's a vastly different experience, to be sure, but there are the "windows" and the mouse pointer and so on. It plays mp3s and surfs the web. I don't know the exact point at which Apple's offering simply pulls away from Microsoft's, but my guess is that it would be a tad beyond basic functionality before it occurred. In order to be different enough to be vastly better, Linux would almost have to be unrecognizable, and then it would be biscuit to the cake (not a perceived one-for-one substitution).

I disagree. At it's core, Linux doesn't need to change a whole lot.

Package management/software install, drivers, and codecs are more important.

The DE's need to evolve a bit as well, but I think they're on their way.

So, by package management and software installs, you mean that the user would have an easier time adding programs to their computer, and by drivers and codecs you imply that the user would have access to more media types more easily. It sounds like Windows-land to me. I think I didn't make my point clear. Because Windows is what people expect, and Windows does an decent enough job delivering it, and it's on about 90% of the desktops people encounter, being too terribly different from it will be a harder marketing sell. Linux needs to fall back on its old strengths when it comes to selling itself, namely freedom, choice, stability, and viral anonymity. Sure the DEs can be "improved" (almost all the arguments I see here about that seem to be subjective taste-test results), but if they do what people expect, we're right back at Windows, and if they don't, people wonder why they're using it.

The bad car analogy: Linux won't successfully compete with HOME USERS (please remember I said that) even if they bring a Corvette (cheap, fast, awesome) if the average family already has Camrys and Accords on their minds. Linux should be the Hyundai Sonata instead. Very similar, but just not as pricey. I see Ubuntu going for just that, and they tend to be getting along okay.