If it could provide email, web, and basic word processing, with less hassle than Windows, wouldn’t that be enough for many people? Kick out all the gamers, power users, and leave students, older folk, and those that generally need a computer that just works when they turn it on, would there be enough market? MacOS is making a comeback on a similar concept, why can’t Linux jump on board?
I think Linux is at the point where it can provide an easy to use environment. Even if you throw in something like Crossover to run the plugins, the cost of a Linux box with the basic software, at around $100-$150 will still be cheaper than a similar box with Windows, Word, etc.
Maybe Lindows has the idea. Now with Click N’ Run, but the concept in general.