The two sides of the argument are interesting and both valid. Clearly a seamless replacement of Exchange would be the ideal solution, but as far as I know it is not there yet (although I know there are some posts to the OpenGroupware.Org project which may have some potential).
However, I don't believe that any argument along the lines of 'It can't be used in all cases, therefore it is not a viable option' is valid. There are very many small business out there running MS Small Business Server. This has to run as a stand-alone server and is limited to 50 users. The e-smith server is a (pretty much) direct replacement for this product, or would be if the shared calendar / folder features in Outlook worked for with it.
I accept all the arguments about using an add-on to Exchange, and that Bynari Insight Connector is not free. However, the cost in minimal compared to the MS alternative - not only on the software, but also for the equivalent hardware needed.
The reason I raised the thread is that I believe the products already exist to make this possible. If Cyrus IMAP (or any IMAP with ACL) was installed on SME then we would have a workable solution NOW. Not suitable for everyone, not without some compromises, but a practical, viable alternative to MS Small Business Server that would provide a Small Business the same functionality with hardly any noticeable change to them on the desktop. Unfortunately, I lack the skills to do this and so am dependent on others.
A seamless Exchange replacement - Yes, please. But in the mean time, how about using what already exists to plug (what I believe to be) the biggest - possibly only - gap in the functionality of SME, when comparing it to MS SBS.