Penetration of Unix and its clone even today is in Universities and not anywhere else.
Many embedded devices including all your Routers. Also, the Jet Airways had in-flight entertainment systems (I now fly low cost so don't know if it still exists. :) ). Those use Linux and VLC.
So, for dumb users, Windows is excellent. But stand-alone devices use Linux. I am hazarding a wild guess, but if we put all Routers, media players, GPS receivers, etc. together, the number of Linux installation might exceed Windows. However, since nobody pays for the OS and most of the stuff is available "from thin air", nobody actually cares too much about it. And there the Linux conference are very unlike the MS conference/workshops. In a Linux conference, people even bring their own chairs and in MS workshop there is the usual corporate tamasha.
I am sure Linux is doing very well in what it is supposed to do.
-Akshay