I have to disagree, placing something like "Iceweasel" instead of Firefox would be very bad to the end user, because Firefox is a known brand, and people like Firefox. When these people that know Firefox but doesn't know these trademark issues install Ubuntu will just look and say: "What the hell is this iceweasel?" and even if these people understands later that it's just firefox with other name, the initial impact will be negative for Ubuntu.
AND, in other hand, many extensions will just not install if you are using something with a name different then Firefox. Downloading a .jar, unpacking, changing the version string in a xml, packing again, and installing manually isn't a good thing for everyone...
Yes name branding is very important when you are trying to convince someone to switch and the best you can come up with is, hey they use Firefox. Yes, people are going to go, "WTF, where is Firefox its cross-platform why don't I see it in the repos." I did the same when it left my Debian (or before it left, but the upgrade was to Iceweasel). The solution is have Iceweasel by default and keep Firefox and their EULA in the repo for download.
How is it dumb? I don't have a EULA to click yes to. Who needs to search for Iceweasel? I already know it is Firefox and so everything I'm interested in would be under a search for Firefox and not Iceweasel.