I do think your full of it. Yes, Linux works fine. It has for a long time. What you seem to be missing is that installing the OS at all is not 'just working'. It is a very small group of people that go looking for drivers in Windows. Most people just buy a PC that is preinstalled with all the the necessary drivers. When the computer stops working well, they get rid of it and buy another. They never go looking for drivers. I also agree that other than games, there is all the software that most people need available for both Linux and OSX. What you seem to be missing is that most people don't know what these applications are called. This requires effort on their part to figure it out, and thus for those people it doesn't "just work".
It is not lack of choice. Virtually every PC out there could have Xubuntu installed on it. Most people don't do that because that is not "just working".
You are arguing against a straw man.