That's cool. However, people must still understand the software they are using. For instance, someone is selling Nginx 0.8. The latest version is 1.0.15.
To give a perspective on update frequency, according to the same page (http://www.turnkeylinux.org/updates/rails), two updates before that was Fri, 2009/10/23 - 16:35. This update claims to have ruby 4.1 installed. It seems that their VM image also includes a time machine.
Not getting a huge feel of confidence from that being featured on their landing page. An open market can be good, but when it comes to supplying an image for my production env, that type of thing could leave me feeling a bit uneasy.
Kudos.
If you're worried about security updates, Red Hat monitors dozens of channels and backports all security fixes to all supported software, so that's not a problem.
If you're worried about features, Red Hat selectively backports features at customer request, or gives the customers free updates to the new RHEL.
Our customers want to install a particular release of RHEL and have it work and supported for 10 years. They actively don't want random version upgrades (which often remove as many things as they add, as well as causing exciting new bugs).