Hey Dave,
let me give you my opinion.
Too many distros - don't see it as a problem
Too many audio-optimized distros - don't see it as a problem
Not enough native plugins, esp. instruments. - agree, big problem, would not speak of instruments only, effects as well
Inconsistent support for VST/VSTi plugins. - don't see it as a problem if we go for our own standard
Too many unstable/unfinished applications. - agree
Too many "standards" (esp. wrt plugins). - agree
Poor external/internal session management. - agree
Poor support for certain modes of composition (think Ableton Live). - agree
Lack of support for contemporary hardware. - probably, although I have no data as to how big the problem is
Confusion re: desktops, and GUI toolkits. - i am confused as to why that would be a problem with linux audio
Too difficult to set up audio system. - don't agree
JACK is a pain. - don't agree
Too much conflict/fragmentation within the development community. - don't see it as a problem
I would have to comment more on the latter. I don't think it is bad or unavoidable to have fragmentation and conflict. This is natural for most human interaction. The problem, in my view, is that there are so few developers (compared to, say, Windows Audio). And because there are so few devs, fragmentation becomes a problem, since each developer is then just a one man project with a small audience.
Cheers!
--
Louigi Verona
http://www.louigiverona.ru/