Linux distributions could use a boost in a few different areas, specifically these five: Virtualization, Graphics, Games, Point-of-Sale and Education. Some significant progress has been made in the past year or so in virtualization and graphics but there's still more to do. Everyone has their own set of ideals for Linux development but if effort is focused in each of these areas, we'll see much more mainstream adoption of Linux-based technologies.
1. Virtualization - Linux is currently the platform of choice when it comes to virtualization. VMware's ESX and Citrix XenServer are synonymous with enterprise virtualization. However, now that Microsoft's Hyper-V is on the loose, free of charge and able to virtualize almost any Linux distribution; that could rapidly change.
What's needed: Fully developed virtualization solutions that are free and include enterprise-capable management tools. Offering a free platform with shabby tools won't cut it up against Microsoft's Hyper-V product.
2. Graphics - Linux needs wider support for leading graphics cards. Yes, it's much better than it used to be in this area but how many of you have bought a hot new graphics card to find out that there are no Linux drivers for it or that they are beta and not ready for heavy production work. This drives early technology adopters to stick with Windows and to never seriously look at Linux for high-end graphics applications and work.
What's needed: Manufacturer Linux support that's equivalent to that …