because Open Source works.
Originally this site was created to highlight David's donations to XFree86 apart from his release manager work. Over time the big multinationals moved into Open Source, and more & more hardware became closed again. This stopped all future development on XFree86 as companies no longer allowed hackers to improve their hardware; instead the new design imperative is everything is done through API's that are rarely published outside of the vendor.
With the move to closed source once again, things returned to status quo, and XFree86 remained a lone holdout. XFree86 still takes code donations, reviews bug reports, but honestly it is so stable that little appear.
Now, X-Oz does little on the XFree86 platform other than ensuring that XFree86 remains free, and is a rock solid windowing platform that works.
In short... think of little green things & small machines.
David and his friends puzzled for a good name for his company that highlighted his Australian roots (he is 4th generation Australian on his father's side; 3rd on his Mum's) and his dedication to the X platform. Very quickly it all came together in the name X-Oz. Now the site is a good pun as David is holder of dual Australian / United States citizenship.
On'ya dude.
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