If you think about it, Android's problems with open source allowing manufacturers to have their own flavours of Android, is one of the reasons why the average user might think TouchWiz (or other skins) is Android and that's why it sucks.
Note that this is just _one_ reason I believe LOD won't be a thing, there surely are more.
One is not really dependent on the other. You could use open source and not allow modifications or you could use closed source software and allow endless customization.
I also don't consider it an "android problem" that manufacturers do this. Most of the good stuff ends up in standard android after a while, which wouldn't have happened if no one was allowed to make the changes in the first place.
Good point.
> Most of the good stuff ends up in standard android after a while, which wouldn't have happened if no one was allowed to make the changes in the first place.
This was mainly due to Google pushing more stuff through Play Services. It would be nice if there was some more control/constraints on Linux flavours.