I'm sorry if that post came across as arrogant - it wasn't intended to.
The point I was trying to make is: some people have a misconception that ssh is hard. They see the word "cryptography" and panic.
The reality is that having an ssh client under Windows is really, really, really easy. Honestly. Download putty; double click on it; the end. It couldn't possibly be any easier. On the other hand, using telnet for device administration puts you at a real risk - especially if your packets are going over a wireless interface.
Of course, a project like OpenWRT has to address the needs of its userbase. There may be users for whom having telnet access is more convenient, and having it meets their needs better, as expressed by some people above. We can try to educate them that actually ssh will almost certainly meet their needs just as well, but if that's really not the case for those people then there's no problem; OpenWRT provides telnet after all.
Now, if there are users who say "I want to use telnet, but I also want to password-protect my telnet session, even though I'm perfectly aware that my password is sniffable and therefore it's almost pointless using passwords with telnet", then I think OpenWRT can meet their needs too; I expect they just need to tweak the busybox configuration and away they go.
So, given that OpenWRT can do all this, the only argument really is about what the default configuration is. Personally I would prefer the default configuration to be "secure". There has been a big shift in this direction in the rest of the Linux world; a few years ago all distributions shipped with dozens of daemons turned on by default. This represented a large number of possible vulnerabilities. The shift has now been towards having only the minimum enabled, and the user having to enable all services explicitly. For those diehards who say "ugh, I can't administer my newly-installed Linux box because telnet is disabled", they just have to enable telnet themselves (and accept the consequences); this is a lot better than the rest of us having to remember to disable telnet on every machine we install, because (a) it's more work for the majority, and (b) it's a step which can be easily be forgotten.
Im summary: IMO the majority will want to use ssh and will not want insecure services like telnet enabled. It seems reasonable to me that the default configuration should aim to minimise the amount of changes required by the majority of users.
As for running Windows on your wireless router: perhaps someone at Microsoft with a few spare hours on their hands could take the PocketPC source code and port it? 