No, it isn't. It is quite irrelevant how much you quote the Social Contract. Go look at ftp.debian.org for a change, specially in the non-free and contrib directories.
As explained months ago in http://mailman.fsfeurope.org/pipermail/discussion/2006-February/005538.html comparing ftp.debian.org with ftp.ibiblio.org is more accurate, as the debian.org and gnu.org name policies are different. The main GNU ftp server also distributes non-free software.
ftp.gnu.org does not distribute non-free software.
Infact, Debian does develop non-free software, since DD's who support the non-free section do exactly that, develop it.
No more than GNU develops non-free software because some of its developers also support non-free software. That is, not at all.
GNU doesn't develop non-free software. Nor does GNU support non-free software. That some contributors send patches for that things work with non-free software does not mean that GNU supports or develops non-free software.
Please stop tossing mud at the FSF and the GNU project with these false and absurd accusations.