Linux and out of touch seem to go hand in hand unfortunately.
What Ubuntu should have done was create a demand for a true smart phone Linux OS by producing ROMs targeted for the top selling phones. Who wouldn't want to be able to run Aircrack on their Galaxy S4? CyanogenMod has over 3 million active users, and that's just a hacked version of Android, not real Linux. $32 million would be a piece of cake to raise with that kind of user base. With the interest Ubuntu could generate from ROMs, they would have phone manufactures lining up around the block.
All Ubuntu would have to do would be to promote an OS that is built to withstand government intrusion, not aid it like Google and Apple do, and they would have a gold mind.