Nobody's interested in doing a lot of work to accomplish what they already have, and even if they may be interested, a lot of students etc won't come to this installfest simply because they won't see (note the 'see') any gain in it.
You've mad a good point, but you're over generalising here. Some people *are* interested in doing exactly this, whether its for fun, fiscal or political reasons.
So, what can you do on linux better than you can do on windows which is actually visible to joe end user? (remember, increased security and all that stuff does not apply here). It doesn't have to be big or fancy, it just has to be something. (DISCLAIMER, As I've said I can't suggest this thing, but I'm hoping that some of you gurus will know)
For 'Joe End User', being a typical end user, the answer is probably 'nothing'. There's no killer app that clinches the deal. There's cool things you can do by-the-by, like setting XEarth as your background, or gdesklets under Gnome 2.6, and so on. That said, that's really only Active Desktop anyway, and we've all hated that in Windows since it first arrived. Your points apply very well in the case where we're pushing Linux on to others. In this case - and in most cases the LUG has to deal with - people already want to use Linux, or are curious enough to give it a try. They've opened the door, we don't need to do that. Daniel