We like Penguins but as the articles points out there is very little revenue stream in that model. We have thought of developing a non open-source product that would form a base where Linux is weakest and that is in the graphical user interface area. It was too tough to raise the money in a pure open-source product area. If Linux had better interface that was simpler than X-Windows, it would definitely be better to port programs to. If that were the case, then it would acquire a critical mass of application programs, the lack of which is one more weakness of the system.
The trouble with getting money from VC people is that there is a difficulty in taking OS companies that compete with Microsoft public. They can be taken over. It is also very hard to convince people who are investors of the potential of companies with technical advantages that software users and programmers will buy. It is almost pointless if the investors do not even use software so cannot possibly appreciate what the technical matters might mean.