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Most of what you point out is true. However, it should not be forgotten that advertisers would add an additional voice to the mix, and it could be the voice of reason (or authority) that straightens out many of the problems you mentioned.
Yes, the publishing industry has created most of these problems, mainly by dragging their own feet. Advertisers, by virtue of offering them money, would be in a position of kicking their tails and getting them going on deciding on compatible software formats, more reliable software and hardware, promotion, and selling and distribution models. After all, why spend money on something that doesn't work? And when has advertising ever held their mouths about how business should be done, especially when they are bankrolling it? Take a look at the magazine industry, for example, and it's clear how much the advertising industry has shaped it.
Don't forget that, unlike publishers, advertisers always listen to the customers, to see what they like and don't like. If it's clear that customers want a particular format, sold (or given away) in a specific way, the advertisers will make every effort to give the customer that, so their ads will end up in their thankful hands.
Again, advertisers have an advantage here: They can create a new market for their ads to be seen, and therefore more revenue for themselves. It's worth their while to step in, even if they do need to handhold the publishers to do it.
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