In my opinion bug #1 should be:

"Catch up to functionality/user-friendliness of Microsoft or Mac"

that is if I am correct in understanding that you mean you want to gain
market share when you report "microsoft hold on market" as bug #1

Are developers really that oblivious to the simple fact that the only
thing that matters in gaining market share is 1) Make things work out-
of-box--hardware, common softwares, 2) User-friendliness-- looks and
functionality, 3) better features,

Ubuntu seriously lacks in user-friendliness/functionality that is found
in Microsoft and apple. Few examples from my own experience of using
Ubuntu for a year are: 1) Audio setup problem--alsa, pulse, etc is still
not solved and that a 'proper' sound system doesn't work out of box like
in win xp I had. I don't know what the problem is but it doesn't work
Out-of-the-box. 2) featureless file browser compared to Finder in mac.
3) no control panel. 4) video player doesn't work out-of-box. etc. 5)
Having to deal with terminal. I could go on for a few more.

These drawbacks of holding back Ubuntu to let users utilize and enjoy
the "advanced" features that it offers--compiz is the only one that
comes to my mind. Again, remember that if the user has to hassle around
just to make an advanced feature work on OS, you can't call that an
advanced feature! ie. an advanced feature that lacks an easy access by a
regular (non-terminal user) user, it's basically non-functional. Do
developers agree with me here?

The only praise I can give to Ubuntu is it's ideology of open and free
software. Although the ideology provides greater freedom, unfortunately,
it hasn't proven to be better than closed source in terms of making
human-computer interface and experience easier, which is all that
matters at the end of the day.

-- 
Microsoft has a majority market share
https://bugs.launchpad.net/bugs/1
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