FSF doesn't recommend Debian because it promotes nonfree software.
However, I think that if you ship a system with a custom Debian install, you can say you aren't using Debian, but custom firmware. Similar to how Replicant is based on Android but is considered free. Regardless, I'm of the view free hardware is more important than whether the OS is entirely FSDG-compliant, so long as I don't have to use non free software (as far as possible currently).

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