I used to agree with you, and for a conventional commercial product it
would be a liability, it makes the name longer and is a bit late 90's.

However given the number of somethingoffice packages out there, it's a
useful addition, it's also a good fit with the community/collaborative
nature of open source.

The dot org can be turned into a positive, and your clients should know
why. If they don't know or care then they are missing the major long
term advantage OO.o has over commercial alternatives. Not simply that it
is open source but that it is software that belongs to, and exists
solely for its users. 

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