I don't buy it. Academia may have some issues, but there are certainly things that Academia is good for and some things that an open-source-type community is good for.
It has been a long time dince academicians have developed a new pulic worthy OS, but I would be highly surprised to see the public at large develope something as difficult, complex, abstract and important as the PCP Theorem (probably the greatest recent comment on the P != NP conjecture--for those of you who are interested, the theorem says that supposing P!=NP, then there is a limit as to how close an approximation algorithm can approximate a solution, conversely, if an approximation algorithm can come closer than that limit, then P=NP).
"Engineering without management is art." -- Jeff Johnson