I wish everyone would relax about this.
1. Canonical is a for-profit company. I want them to be successful, and I definitely do not want them to be Debian (not that I have anything against Debian, but as an end user I have other needs). Having a service that integrates wholly with Ubuntu is a great idea to move the company and product forward.
2. Open Source projects are generally more successful after significant upfront development has gone into them. I am sure that Canonical will OS this as soon as they have another project to move forward on.
3. I find no inconsistencies in keeping code closed in a service. It is completely within the spirit of open source.
Using Debian and wearing that brand is showing your support for hard-core free software. Debian is about a community working together to make something great.
Ubuntu is about community trust with a company. These sorts of relationships are always tense. I use KDE4 and often feel ignored by Canonical. It happens. But with this sort of structured relationship we community members get resources put into developing the sort of things we want to see, as opposed to the sort of things the developers want to see. The trade off is that the company is going to work towards having the resources to keep doing that.
So far I prefer the structure I have by being with Ubuntu, I don't miss my Debian days. It's really your choice, Canonical's not (IMHO) doing anything immoral. But their model is not Debian's model and it doesn't make much sense to conflate them.
I hope the developers produce something that allows Canonical to really move forward as a company and thus allows Ubuntu to move forward as a OS, and as a community.
Mark, Elliot; Good luck.