There has been a lot of mud slinging and distrust about what Mozilla is doing and how its affecting the community. There are folks at Mozilla that can explain this better than I can, but they already have, many times.. I am a Debian user, and so I have heard both sides of the issue, and thought about it some. This is just my take on it.
First the EULA, we all agree that the format it was presented in was wrong and the content in it was wrong. This is being addressed as the article pointed out.
The need for any sort of notice or terms: Firefox as a browser tries to offer a certain user experience, both to novice and advanced users. This includes things like anti-phishing protection, etc. These require some sort of web services. This mostly requires some sort of data exchange - stuff like that isn't exactly covered by the GPL (or the MPL). Mozilla could just sweep all this under the rug and not notify the users at all. That would be wrong. Users deserve to know, that's exactly what the notice tries to do.
Issue of re-branding: This one has been discussed to death, all I can say is Mozilla is trying to assure that the user experience is consistent when anyone uses a browser called Firefox. You can read all kinds of machiavellian motives into it, but I firmly believe that our hearts are in the right place when we assert those trademarks.
As to how all the distributions deal with it - I am not sure I have an answer. There has been a lot of angst, and mistrust in the community about this stuff and it bothers me that Mozilla is somehow being thought of as the villain here. We are an open source project, we will continue to be so and we are doing our part. Yes, there are some short-comings and we are addressing them, the Linux (and open source) community should realize that. We share a lot of the same goals and ideals, I feel its time for us to acknowledge that and resolve these issues. I urge you to look at the points I made above and give it some thought.