Red Hat published an update on its strategy for Linux on the Desktop. Red Hat has no plans to create a traditional desktop product for the consumer market in the foreseeable future.

Red Hat is instead focusing on Desktop and client applications for business use to complement their main Linux server business.

Red Hat basis their decision not to play in the consumer desktop market with the need to only develop revenue generating products. They still see the Linux Desktop as a niche since Desktops are dominated by Microsoft.

Despite the new success and momentum of Linux Desktop through low-cost PCs or notebooks like the Asus Eee PC (1 million shipped!), not all Linux companies need to offer a consumer desktop.
More details on the Red Hat site.