2) Although Linux is the name of a kernel, it also became a banner for a different style of free software (free vs. open source, the two have different philosophies). The Linux style seems to be OK with free and non-free software co-existing. So calling a distribution GNU/Linux sounds like the entire distribution is in line with the FSF goals. I'd rather leave the GNU title only to distributions that are 100% Free (GNU style free).
3) Back to point 1, a lot of people were brought together due to the different style (Cathedral vs. Bazaar) of Linux (the movement, not the kernel). So Linux should get recognition for more than "just a kernel".