Yes, but the "restricted" repository is an officially supported repository. It's a part of Ubuntu, unless you're going to be pedantic and say that nothing is really part of Ubuntu unless it's on the live CD. Such a distinction is meaningless. The whole point of the repositories is to use them.

That doesn't mean that using Ubuntu is a problem. You can use Ubuntu without proprietary software very easily, because Canonical has separated out proprietary software into distinct repositories (for the most part). But that's not a legitimate reason to think of Ubuntu as completely libre.

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