My take is that Neo900 team and FSF are speaking different languages regarding the last point. Neo900 team proposes something that would provide the best possible privacy, while the FSF, to endorse anything requires all the software to be free. I think we are in a situation that the FSF really likes the project, wants to endorse it, and is trying to find a loophole in it's own guidelines to do so.
By christening the modem "circuit" it doesn't make the problem any less, it just moves the problem out of the jurisdiction of the FSF and into that of one imaginary FHF.
If there is another, saner way to actually be compliant with the FSF guidelines and at the same time ensure decent privacy, IMO it would benefit both parties.