I understand why you would want this, but I gotta vote against it. It costs money to produce the disks, packaging, and shipping to the stores. The money would be better spent on more development support, in my opinion.
I don't think people would understand. Install CD's are not benign, they have tools that will completely wipe a hard disk. Ubuntu could get a bad rep from doing something like this.
jimcooncat, you're absolutely right about the costs and the risk.
My concern is that, as it is now, we're a comparatively small and "exclusive" club, and unless someone's activley _looking_ for anything else than Windows they won't come across it.
If you mention Linux they look at you like the man from Mars, and in their eyes you're the uber-nerd.
I wouldn't suggest something like this for any other distro. Ubuntu is the first that's simple enough for most people - as long as they don't have any special software requirements.
And: it's a Live-CD which doesn't do any harm unless you hit "install".
AOLs bad reputation is due to them overdoing it. I just put that part in to get attention. ;)
I think there's an inherent reason why it's a bad idea. People have gone accustomed to considering spam CDs for what they are, spam. I think it's important to make people realize that there is some value in it before pushing it on them. And replacing your OS is a major step, not like trying out crappy sharewares. Some media coverage and maybe intelligent advertising techniques are a better way to go.