The FSF's definition of 'misleading' seems very strange. In what universe is 'a system with the Linux kernel' a misleading way to describe, e.g., Debian? It *is* a system with the Linux kernel! Just because it happens not to mention GNU doesn't make it misleading. It's just more inclusive than the FSF would like.
This endorsement program is definitely showing the FSF's least attractive side. If even one manufacturer signs up to it, I will be surprised: if that manufacturer isn't bankrupt by the end of the year, I will be amazed.