Excellent points.
The dynamic for ridiculous EULA's would instantly change, because on average the stakes have just shot through the roof. The market would no longer be as willing to forgive the risks.
What if software manufacturers were protected under law and could not be found liable? A smart software company would talk big, say their product is the most safe but make no promises. Granted, as soon as one company steps forward and changes the agreement, the whole situation changes, but who would risk such liability?
So what if no software vendor stepped forward? I'm betting there would be a lot more people calling for legislation to be passed. Sort of similar to the current situation, isn't it?
With operating systems for individuals today, there is not enough risk associated with purchasing an inferior product
This is debatable. Having your systems compromised can be very expensive. But what other options are there? How many companies are in a position to demand a different licensing agreement? Just because software is open source doesn't mean it's superior than closed source. So where does that leave you?