But his pseudo-definition of "free" is rather misleading. I don't think Jobs argues that Android isn't free in the sense of being closed-source, or being sold for money, or not being available on most devices. It is. I know that I can compile it right now, from my command line. I know that I wouldn't have to spend any money. I know that, with enough tinkering, I can put it on my iPhone or whatever.
In the real world, on the other hand, this free Android doesn't exist. When I buy a Samsung or HTC or Motorola Android phone, I don't get plain vanilla Android - I get a distorted version full of crap and software I neither need nor want. In the real world, Android is almost never the pure version Rubin wants it to be. It's a weird hybrid, coerced into submission by Verizon, Motorola and friends. The jailbreak community for Android is as large as the one for the iPhone, meaning that in a very import sense, real-world Android is about as open as iOS and webOS.
I don't care about theoretical openness. That's just rhetorics. Jobs merely points that out.