That means it's perfectly fine to take a GPL work and modify it without giving the source to anyone, as long as you also don't give binaries to anyone. And if you're distributing binaries privately with just a few people/companies, you also don't need to publish the source publicly, only to those few who got the binaries.
EDIT: Of course, you can't prevent those few from redistributing it publicly themselves.
This brings up an interesting point; which BMW might try to make if this ever goes to court.
There have been times when device manufacturers (and car manufacturers) attempt to prevent device owners from modifying the code on their own devices. I think once folks tried to drag the DMCA into it. There's a lot of muddling up of the ownership waters there.
This may mean that the ownership of the binaries can be similarly challenged. Somehow. A point can be made that a binary living inside a phone (or car) I have bought has not been "given" to me (and thus the source code need not be given to me either).
Granted, it's rather convoluted logic, but then again, this isn't the first time stuff like this has happened.
Would be interesting to see how such an argument actually pans out.
No. Your latter assertion is correct: GPL code is not free as in beer. How you contort that into a "mirror-image of proprietary license" is your own interpretation, and requires a lot more elaboration on your part.
To put it in the most simplest terms: the GPL is mainly concerned with the freedom of the source code, not the freedom of the developer.
Freedom of the users. Source code is not a person, it cannot have "freedom".