1. Ubuntu != Linux. If Ubuntu is not working for you that does not mean that Linux does now work for you. Try one of the other consumer friendly distributions, like Mint, openSuse or PCLinuxOS.
This is why people pay and use Windows and Ubuntu is given away free.
Nope, that is because Windows is a proprietary OS produced by Microsoft to make money for them, while Ubuntu is an open source OS produced by Canonical that is a platform for them them to sell their services. It is purely a different business model and has nothing to do with quality. Some of the OSes with the highest quality you can get, like Debian, Slackware, CentOS, Scientific Linux or the BSD family, are available for free.