The bigger issue is Ubuntu isn't a product. It's a nice community layer with some high level project management spearheading the direction and a team of core developers adding nifty features. If there is paying for the product then how is that money distributed to Jack John Johnson the guy doing patch fixes on his free time because he enjoys it. Does he get a salary? Some kind of financial bonus? Then you've got the…
This idea that what Ubuntu does is just some light packaging is pretty demeaning to their true value. Ubuntu really pushed the state of the art in terms of polish for Linux distributions. You can argue how much of the total product value that is but I don't think it's at all reasonable to say "Ubuntu isn't a product" and that it's just a "nice community layer with some high level project management". I'm also curious…
I won't however change my opinion. They did push the state of it forward, but so did Knoppix in many ways, and a fairly large amount of other distros. Are they all products? No, they're projects, with varying levels of success. It's a great platform, but I don't think that classing it as a product is helpful. It's a community project, approaching it like RHEL wouldn't work, they have completely different aims.
My argument isn't that Ubuntu is a quick paint gloss improvement, it's that they've taken the core work and improved it rapidly (although Unity could be argued) and teamed it with their biggest marketable quality which is that they've built a community around their work.
Do they deserve money? Yes, of course, thats why they take donations. Should they sell it as a product, as an actual thing? I don't think so.
(if you're working for Ubuntu, I love you and I'm not being mean!)