Is the yaboot.conf generated by the 7.7 installer identical to what you had with Jessie/8.8?
It appears to be, yes.
Anyways, I now have a G5 running on the latest version of Debian (8.8 at the time of writing). Here's what I had to do:
I used jigdo to acquire the 7.7.0 DVD 1 from
http://cdimage.debian.org/mirror/cdimage/archive/7.7.0/powerpc/jigdo-dvd/.
Make sure your machine is updated completely by apt-get updating and then upgrading.
I started the upgrade from 7 -> 8 by changing "wheezy" to "jessie" in /etc/apt/sources.list. Make sure to uncomment the security.debian.org entries as well.
Afterwards update and upgrade again.
After this, my gnome was completely broken, the swap partition wasn't working correctly (or so it seemed), and the audio didn't work.
I installed xfce4 instead of gnome since I wanted it anyway and now that's working fine. I'm using lightdm as the display manager.
To fix the audio, run sudo rm /etc/modprobe.d/blacklist.local.conf and then reboot. Make sure the PCM volume is turned up some in the xfce audio mixer or no sound will come out.
I fixed the swap partition by editing /etc/fstab and changing what it looked for from the UUID to /dev/sda4 (change it to whatever your swap is at).
After this, I have a perfectly working G5 running Debian 8.8.0. Sorry for the bad writing, I've been writing this out while playing Civ with friends so I'm not fully focused.
I made a video of the machine perfectly playing part of Bohemian Rhapsody here:
https://www.youtube.com/watch?v=WhWWmTpqKdM&feature=youtu.be
If the audio sounds weird, it's just because of how I recorded it. Everything's working great!
(Now I wonder what's wrong with the latest Debian installer for G5s...?)