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Who said that "the only way to properly interact with TeX is via the command line"? What I said is: you can provide all the GUI tools you want, at some point (and this will be rather sooner than later) problems will crop up, and these problems will be impossible to resolve if you don't want to use the command line, don't want to learn about PATH settings, don't want to learn about where configuration files go and what they do. This may be different in, say 10 years, but it would be misleading to pretend that it is different today. TeXLive 2008 is just being tested, and in this regard, it's no better than its predecessors. Unless and until we have systems which will be easier to maintain, users who expect to be able to stay away from the CLI are bound to be disappointed.
Not necessarily I guess. See below.
Your example about Apple's Xcode actually proves my point: I said that if you can afford to throw a couple of million $ and a dozen programmers at this, it is actually feasible (but will still take time). Apple has done just that; the Xcode IDE hasn't been built by volunteers in their spare time, now has it?
That's right. My point though is that once the installation has been done via a GUI (a rather simple one suffices, by the way) there's no need for knowing about paths and configuration files. (That is, if the installation package doesn't happen to be buggy in the first place …) And this also applies to updates unless you want to perform them manually. However, I don't think many people would think of updating any large software environment (Xcode, KDE, Gnome, … whatever) without the help of a GUI package manager. I also doubt the end user will ever have to tweak any configuration files of TeXLive. Neither would they be willing to. I wonder why this has to be different for ConTeXt …
As for "fumbling around with dozens of configuration files": such exaggerations are not very helpful in this discussion.
Well, until roughly two weeks ago, this wouldn't have been too exaggerated though ... now thanks to Hans' and Taco's efforts this has improved vastly! There's probably still some way to go. Oliver