They made false statements, so I would say they misled their customers. They thought they could bring free hardware to the mainstream audience but the only way they could see how to do this was by using hardware known to be flawed, and in doing so alienated the people who have been interested in free hardware for a long time (and other people who read the small print). If they had the resources to produce their own hardware, then they should have chosen some sort of ARM chipset. Certainly they did mislead people about what free hardware really is. It is difficult to tell why they did this, though.

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