There are advantages and disadvantages to either approach.

Of course, the Ubuntu model works, and it works very well. Ubuntu is very clearly a community project, yet also has a very clear decision-making structure in place, headed by "SABDFL" (Self-Appointed Benevolent Dictator For Life) Mark Shuttleworth.

Of course, Mark Shuttleworth is an amazing leader and businessman, and uses his SABDFL position very wisely. (Shuttleworth earned his hundreds of millions the hard way, building a business on his own, before allowing himself to be bought out and then using his money to launch/support Ubuntu.)

Not to say that it can't get there, but WordPress just isn't there yet.

Perhaps Matt Mullenweg will prove to be the same sort of canny businessman and leader. Matt is an incredibly charismatic, enthusiastic, and intelligent leader for WordPress, but IMO still has the business acumen and maturity of the 25 year old that he is. (And there's nothing inherently wrong with that; after all, look at what Bill Gates built, from much the same start.)

With all that said, if Matt wants to keep WordPress as his (and Automattic's) baby, that's fine. The model has obviously worked fabulously thus far.

My main frustration on this issue is when WordPress tries to take advantage of the benefits of being ostensibly a "community" project, while at the same time not relinquishing the control/decision-making to that same community. Choose a position, and then live with the advantages and disadvantages of that decision; don't try to straddle the fence.

Personally, I'd be fine with whichever way the decision were made. I love WordPress and don't ever see myself using anything else.