They're definitely doing something right anyway, as the number of users moving to Ubuntu are growing daily.
If anything, it's working as a good transition OS for people between Windows and the more "hardcore" Linux OS's. A lot of Linux fanatics in someways still dismiss Ubuntu because it's earlier releases were very much graphical and deemed simplistic in a sense. (I haven't worded that well have I.)
But there's certainly been a push for it's capabilities with recent releases and I think it's certainly starting to be taken as a more serious distro. In my opinion anyway.