Few things to consider:
1. Having Ubuntu instead of Windows or Mac is a step in the right direction
even if people consider it not 100% libre. I did notice an option for "Free
Software Only" at the main menu when booting the Ubuntu 12.04 Server CD. Of
course that is not good enough for many FSF advocates as they will only
consider it viable if you take away the non-free software and not give them
an option.
2. This is BIG for Canonical because a government contract is usually
guaranteed money and they are the primary support contract. All the time
companies are looking to get government contracts (like weapons for war) and
it is considered VERY lucrative. Shuttleworth loves this as it lessons the
burden of him funding the project with his own money.
