Linux Failure? Hardly.
Considering that Google doesn't want to give Linux any credit for providing a solid foundation for their operating system, I suggest that when Google's new operating system is a flop, you should blame them for the outcome. Still, Google is wise to distance themselves from the Linux brand, based on the types of stereotypes commonly expressed about Linux, and its perceived difficultly of use (as you so eloquently parroted).
"Another failure for Linux?"
You've got to be kidding. Ubuntu is more than user friendly enough for moms and grandma's alike. Free software is the future, not software that spies on your usage and phones home.