While I'd love to see Canonical make changes [0] such that Ubuntu could be endorsed by the FSF I don't see that happening. Canonical never discusses the social/ethical/political issues of free software. Even if they did their actions of distributing proprietary, user-subjugating software would undermine them. They clearly have very different goals. It isn't necessary to compromise on values while working to educate the people of the world about free software and get them to switch. Trisquel, for example, also meets the criteria you say and comes with both freedom and privacy included.
[0] http://www.gnu.org/distros/free-system-distribution-guidelines.html