What If All the World Ran Linux?
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This is a highly dubious claim. First off the commercial software industry would just migrate to Linux, just like it does any high volume platform it can make money off of.
Secondly, and this opinion might not be popular but... I for one have yet to be convinced that open source software is "better" quality wise by definition. Yes much of it is as good as commercial products, much of it isn't. I still feel that a controlled, well selected development team working in a proper environment that encourages good communication will be more productive than a loosely tied group effort. The latter often suffers from a lack of clear goals and direction, sadly. Not that it CAN'T be done, but I'm not yet convinced it's a given that open source = better quality by default. Either side of the coin can produce quality, and crap. :)
Just my 2c.
“Better” often refers to better designed, however, and a lot of OSS projects are actively hostile to any one creative vision that would shape the interface.
I'd say that mainstream Linux adoption would likely be dominated by 1 or 2 major distros, like Ubuntu. Any potential attack vector could be targeted at that distro's package management system, for instance, and be assured of some impact.
In addition, many distros share a common underlying base system (like Debian) - any child distros of a vulnerable system would also presumably share the same vulnerabilities.
Also, despite its stronger security model, all it takes is one script that runs as root to have the wrong permissions set, or to read/execute other executables which have wrong permissions and you've got root. I'm not sure if the common packages on standard Linux desktop machines are configured correctly out of the box (I'd hope that they are), but this is worryingly common in corporate/enterprise environments. There are also bugs in other packages (including the kernel) which can be used for privilege escalation through buffer overflows, etc (although these tend to be patched fairly quickly)
It isn't as though people lack options for free software on today's popular operating systems — they just generally choose to use commercial software.
You might as well replace "Linux" with "Web Apps" and get a similar picture. I'd argue we're closer to this world than an all-Linux one.
Espacially point 1 is a joke. How many Linux users habe anti-virus software?