If Linux would produce ONE operating system instead of a plethora of systems I might then try it.
The thing to remember is that Linux is not a company. It is a kernel to an operating system. Distribuions are made based on that kernel and apps that the developers felt were relevant for their product. These may be large companies, Novell/SuSe or small one man productions, There is no overseer of a Linux project because that is the nature of free software. Some distributions are better for servers, some for low end systems, some for the latest and greatest, etc.
The fact that you recognize the value of Knoppix and use it shows it is relevant to you. Knoppix can also be instqalled to a hard drive, you know.
If Linux wants to get used properly it will have to come up with a system like Apple Mac and produce its own computer, in my considered opinion.
That is how Linux has been different. Since Apple sells the hardware and the software they control all variables, so compatibility is not an issue. You can't just scrape together parts and run Apple software on it, like you can with Windows or Linux. The price of this compatibility is higher cost due to the monopoly.
Windows will run on a hodge podge of parts (usuallly) but the newer versions require more and different hardware. The licensing is what drives the cost of Windows, another virtual monopoly, and is now evident with the WIndows activation to ensure 1 copy of Windows for each machine (or it doesn't work). Ina ddition, most companies dfo not write drivers for Linux for their products so these have to be reverse engineered after the fact. (Ever hear of a WinModem that works in DOS?)
Some Linux companies, ex: Linspire have been pushing hard to get their O/S bundled with new hardware as this is how Windows got to their current status - bundling (plus they also used illegal tactics to squash the competition, but that's another story.) That is the number one reason for XP sales, they just HAPPENED to come with your new computer you bought at Best Buy. Oh and you paid for it, make no mistake about that. It just wasn't on the sales ticket.
I think there is a need for many variants of Linux, but in the end we are left with a few larger companies that will make it to the mainstream - SuSe, Linspire, Xandros, Mandriva, and RedHat obviously. Some have gone, some have merged and that will continue.
The fact that there is no huge conglomerate producing your O/S is why the price is either free or ridiculously low, especially compared to Windows, but the result of no overseeing of the "final product" can either be seen as a blessing or a drawback. I thought an anarchist like you would prefer that.
Good discussion, though.