Just take a look at the number of Live CD distributions you have for Linux: Countless. In fact that has now become the de-facto standard for performing installations. It is a safe way to introduce a new user to the features of the operating system. It is ready to use out of the box (well.. most of the times).
But, if you see, there are no Live CD distributions for either Windows or Mac OS X. Now for Windows, it may not make much sense to have one (every other desktop user has used it). But for Mac OS X, this may be the way to go. Becoming a Mac fan-boy is easy... once you have used it. But that in itself is a challenge because of the steep price tag. So does making a cheap Mac OS X Live CD make sense? No.
Today, where desktop environments (Aqua, Beryl, Aero) are becoming more and more fancier, will the transfer rates supported by a CD/DVD ROM do? I don't think so. Also what stops anyone from copying the CD and distributing it? (Ans: No one, at least in India)
Maybe the way to go is USB. Sell bootable USB devices which are more or less mass storage devices, with the operating system on it. The device will be protected from tampering and illegal copying. And of course the packaging should be sexy. Sell it for a price of say 15K (with around 4 gigs of storage) and people should be tempted.
For Apple this would be a stripped down Mac Mini. Of course, what is left to see is how much the USB 2.0 transfer rate will be a bottleneck.
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Here is a list of live distros straight from wikipedia.
http://en.wikipedia.org/wiki/List_of_LiveDistros
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