LINUX

  why Linux is better than windows

1. It's free...legally free.
2. Almost every useful application you would ever want to run on Linux is free.
3. When you want to update to the latest and greatest version, with all the latest  and greatest features, you don't need to buy a new version...and if you want to stick with the old, you can.
4. Security. Defaults are much better than Windows. There are so many free options for increased security, SeLinux and Grsecurity just to name a couple.
5. All you need to learn about it is out there somewhere, for free, whether it's online, in a man page, or in a forum or newsgroup somewhere.
6. Performance...Linux almost never forces you to upgrade your hardware, and it always runs better on older hardware than windows.
7. Simplicity. Yes simplicity. Most young people think Windows is easy because that's what they grew up with and had the most exposure to. That's like someone in the US saying english is the simplest language.
8. The choices...the free choices, are endless. What filesystem do you want to use, what do you want installed or not installed on your system, what graphical interface do you want to use and how do you want to configure it, which pdf viewer do you want to use, etc. Windows will never be that flexible.
Those are just a few reasons....
As for some of your reasons why Windows is better...on Gentoo Linux I can type emerge -v vlc and in a few minutes it's installed, no issues whatsoever. If I choose to I can also use root as my main login and never have any issues or warnings. It's not secure and it's not smart, but it can be done for convenience on just about any distribution. And as for installing anything good on Linux, that's not even worth arguing. There is so much great software available and on most distributions, most of the time, it's not difficult to install.
I agree that some applications just don't exist for Linux, interoperability is more difficult than it should be, and there are lots of other issues. Most distributions are still somewhat difficult to install for people used to windows. There are plenty of good games that are never ported to Linux. People still design web pages for IE only and who wants to run IE on Linux? I could go on and on, but I can't think of anything that would ever make me pay for Windows over using Linux for free.
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