With the latest stable 10.04 I have had very little trouble if any. Granted I am on a ThinkPad. When I ran it on a Macbook Pro and its slightly tweaked "standard" hardware it ran like crap and took a lot of coaxing to get up and running until I just gave up and got the right hardware for the job.
They didn't go from nothing to #1 for no reason, you know.
Calling it a cargo-cult dictatorship is a bit unfair as well - he's footing the bill for a huge chunk of the work, why shouldn't he get a say? Nothing's stopping you from ponying up and starting your own distro dev team; you can even fork from Ubuntu and just fix the thing's you think they're lacking.
We'll see who gets more user mindshare...
I call it a dictatorship because big decisions like that are made by him, seemingly by fiat. He even calls himself SABDFL (self-appointed benevolent dictator for life).
Shuttleworth is trying to be the Jobs of the OSS world--making design decisions because he thinks he knows software design best. Which is fine--like you said, he's paying for it all. But the difference between him and Jobs is that Jobs defines useable software where Shuttleworth just copies and reinvents. And in my opinion, Shuttleworth doesn't seem to have the insight into users' thought processes that Jobs has.
Again, you're right, the man is paying for it all, so who am I to complain? I can just pick a different distro. But the problem is that with all of these more serious stability problems remaining unsolved and stuff like windicators and indicator applets and fonts getting all the attention, I and others might eventually get fed up and switch to a more stable distro (does one exist? Will I go back to Windows?), or not recommend Ubuntu to friends.
What should I tell my friend: Yeah, install Ubuntu, it's great, but whatever you do, don't let it automatically update because your laptop might never suspend correctly after that?
I know it's hard to control quality on a desktop sourced from thousands of individual/independent contributors, but Canonical would do well to put money into their QA department to ensure release-to-release stability instead of into their design department--which for the most part seems to be a Shuttleworth cargo-cult dictatorship anyway.