bansama: While it might be good for the government and so forth to use such things; it wouldn't come without severe worries. Security issues for one thing come to mind. As for schools though, if we're talking teaching aids then no, they need to stick with the software that is most likely to be used and which is more readily available outside the classroom. Sadly, this is still going to be Microsoft products.
We're still in a day and age where the majority of parent's are clueless about PC software and less trusting of suggestions made by their children. As such, Microsoft Office and Works (if it's still around) are going to be the primary non-fun software at hand in those homes.
And businesses are more likely going to want to stick with Microsoft products over open source -- again for fears of security and supposed lack of support in times of trouble. Both of which they have some assurance of when they purchase licenses from Microsoft.
This again, is why schools would need to stick with the software too, as their students are most likely to find themselves in an environment post-school in which knowledge of those programs are a must.
Linux and its open source alternatives to MS products are nearly infinitely more secure that the current MS standard. In the entire history of Linux, there have only been 14 reported viruses, none of which has ever managed to propagate across multiple systems. Compare that to the literal billions that have propagated on Windows machines and that was enough information to convince my former employer to start a Linux pilot program in the company. That was 4 years ago and they are still running a mixed Windows/Linux/Mac network right now.
If companies and governments start using OSS products, then parents, who are employees of those companies and governments, will become exposed to and used to those alternative products. They will then be much more comfortable with having the same software at home. Honestly, once you actually use something like OpenOffice, you'll wonder why anyone would be opposed to using it. It is virtually identical to MS Office in nearly every way.
Schools are precisely where this kind of software needs to be. In order to be prepared for the future, students need to be taught how to use a computer, not how to use Windows. When I was in school in the days before Windows, this was what computer class was, you learned the inner workings of a computer, what input/output really meant, how to write basic (and BASIC) programs. You did not learn how to simply point and click. By exposing kids to alternatives to Microsoft, they are better prepared with an understanding of computers, rather than simply training in software.