Rick Moen recently posted an excellent synopsis of most of the currently available Linux distros to the [link|http://www.vtluug.org/mailman/listinfo/iwe|list]. Lindows gets a thumbs down for:

LindowsOS

Mentioned in order to stress that it's specfically DISRECOMMENDED:
Lindows.com's LindowsOS distribution defaults to auto-login using
the root account. Argh. That's just clueless and a willful disservice
to the company's customers. You'll never see this thing in my
collection, unless/until this ghastly design error is reversed.

And no, Lindows doesn't have to give away their product to comply with the GPL, but they do need to make the source code available. (IIUC)