pip-1.4 does prevent that now (released last week)
but you specifically mentioned the linux distro name, "python-distribute"?
I'm guessing maybe you're concerned with the scenario of how upgrading some project (that depends on setuptools/distribute) forces an unintended upgrade of distribute on a system where distribute is system-managed.
Is there a link to a tracker issue for that somewhere?
3 solutions to ponder:
1) unreleasing the distribute-0.7.3 wrapper, and making any upgrades from distribute to setuptools manual.
2) changing pip's -U logic to not recursively upgrade satisfied dependencies, but that's a *big* change (it's a long story, but there are tentative plans in 1.5 for changing it)
3) in a patch release, include a special case for distribute to *not* upgrade if satisfied (when distribute is a dependency in the requirement set).