Worth noting that the patent conditions still apply. It may be a problem for some free software distribution, and as a result software like VLC isn't always available by default.
The problem is that "bundling with hardware" is very vague. For example, if some OEM sells their PCs/laptops with preinstalled GNU/Linux (containing VLC), does this count as bundling. Or let us consider, say, a singleboard computer that can be both used as a PC and a set-top box just by installing a different firmware (think GNU/Linux distribution) that is provided for free (as beer) at the vendor's website - what is bundling then?
Worth noting that the license is less than a dollar per device and the manufacturer is only required to pay if he sells like 100k devices per year.