this is indeed the biggest reason. They have a "hipster"-branch [1] that is getting some updates but I don't follow that closely. Another reason is that they try to target the "developer desktop" which is not that interesting to me personally and also probably a lot more work (driver wise) than they might have the manpower for...
OmniOS on the other hand is pretty solid and with pkgsrc (default package system on SmartOS and NetBSD) you get nearly 13k packages of open-source software.
My List is also missing a few other commercial players that use and contribute to Illumos:
- Delphix, uses ZFS snapshots to do fancy things with big databases
- Pluribus has "Netvisor OS" that is some SDN Router/Networking appliance [3]
And then there is the long tail of small hobby distributions:
- Tribblix, "Retro with modern features" [4]
- DilOS, which has a focus on Xen and Sparc [5]
and probably more that I forgot and don't know.
It is a very nice community and lots of interesting technology gets developed.
Our company migrated nearly all servers from Linux to SmartOS in the last 2 years and we could not be happier.
[1] http://wiki.openindiana.org/oi/Hipster
[2] http://pkgsrc.joyent.com/installing.html#installing-on-illum...
[3] http://www.pluribusnetworks.com/products/netvisor-os/
[4] http://www.tribblix.org
[5] http://www.dilos.org/about-dilos