The OP criticizes open source as a 'failure' because it doesn't satisfy a demographic for which it was never meant.
'End users' as you describe them, don't need Linux, they have Windows, and for them, it works just fine.
Because if you define "end user" as businesses, then they're going to come in contact with Linux int he office. If "end user" is defined as "power users" then Linux is doing just fine and every "This is the year of Linux" or "My technophile girlfriend uses Ubuntu!" article is wrong off the bat.
Whoever you wrote it for. In open source, it is usually yourself and people like you. Sometimes its businesses, or non-computer people, but usually its 'hackers.'
Gentoo doesn't come with Fusion because it's target user base is made of technophiles who like to tinker. Red Hat doesn't have it because it is targeted at business users who use it to power servers and backends. Ubuntu targets 'ordinary users' and does come with Fusion. It's really that simple.
"Ideally (to me), some distro could have website that could autodetect hardware and have a bunch of {check, drop down, radial} boxes for software to put on it. (Want Fusion? OpenOffice? Gnome or KDE or XFCE or so on? How much information to see? Everything/Quick blurb/Errors only/Whatever else? Hell, if its for the end user, let them upload their own desktop background to use right away. Little things are important too) The site would then customize the distro and create the iso as needed for the individual."
That would be a cool distro but I don't think that it's feasible. Besides, part of the fun of Linux is exploring what's available. Ubuntu comes with a large repository and it makes it easy to explore all the different applications that are available. Trying different things out was one of the things that always kept me on Linux, it was a lot more fun than the Windows model, never mind that I couldn't use Photoshop.
As for the feasibility of the idea? Its not feasible for me to do - beyond my knowledge. But I don't see why someone can't manage it at some point in the future if they wanted to. But that could just be because I thought of it and no one likes to think that they've thought of a bad/impossible to implement idea.
Ideally (to me), some distro could have website that could autodetect hardware and have a bunch of {check, drop down, radial} boxes for software to put on it. (Want Fusion? OpenOffice? Gnome or KDE or XFCE or so on? How much information to see? Everything/Quick blurb/Errors only/Whatever else? Hell, if its for the end user, let them upload their own desktop background to use right away. Little things are important too) The site would then customize the distro and create the iso as needed for the individual.
That would in itself go a long way to creating a usable customizable OS that does what people want instead of trying to guess what they want and create yet another variation within the sea of distros. But, such a thing hasn't happened yet for a variety of reasons.
Just because I can customize a {Gentoo, Slackware, Debian, Red Hat, etc} install to be exactly how I need it, doesn't mean my neighbor who "heard about this lunix thing" can do the same.
"Different target market." Which one are you discussing? And is it the same one as I am? I'm talking about end users.