Comment Development Model (Score 1) 891
I'm only speaking for myself here, but one of the major reasons that I stick with non-free alternatives is the lack of polish. By that I don't really mean that some icon is one pixel off, but rather that OS software in very many cases seem to exist in some not-quite-finished developer snapshot state. Take Inkscape, for example. It is up to version 0.48. Zero point forty-eight - and that's quite accurate, because I wouldn't give it a 1.0 number.
I think that the above is related to the OS development model - release early, release often. Unfortunately that method is incompatible with the "release late, release it right" model. (Please, if anyone reading this runs on the "release early, release it right model" - how's Snow White doing nowadays? You can ask her next time you see her since you're obviously living in some kind of fairy tale.)
It is also incredibly unsexy work to make something polished. Often it requires major restructuring, something OS is very bad at - while OS works great when there are a multitude of small, easy-to-grasp work units, it is worse at tasks that require a deep understanding of the subject and a major reworking.
Despite my complaints above, what I do think OS is excellent at is providing a basic computer system. To think that one can get a netbook for $200 or so and be able to email, browse the web and write documents is just fantastic. With MIT having open courseware, Open Source has truly lowered the barriers for anyone to educate themselves and participate in culture, science and politics.
Now, what to do with Open Source? Well, I think a lot of it comes down to the stated goals of a project. If the purpose of the project is to experiment - say so and don't give people the expectation of production grade software. If the purpose is to provide a commercial grade application - don't let it become a playground of endless rewrites: polish it and release it. Get the thing to a state where you can put a 1.0 label on it and stand up for it - otherwise you're just playing around.