The only one I disagree with is 1. There is a huge range of software for Linux, and it does 99% of what needs to be done. I'm not saying the 1% does not exist, but I generally prefer the Linux software, and it's easier to find and use, in my experience.
Linux can do very easily:
5. Chat/Instant Messaging
6. Web Browsing
7. Picture Editing (ok, not as good as photoshop, but I still said "average household;" average household doesn't have PS)
8. Programming (again, probably not average)
Those are the most basic tasks I can think of at the moment. Linux can do all of them.