I don't think non-hacker types even know what an interpreted language is. It's simply part of his explanation as to why flash would be an end run around iTunes. Even if he made a minor technical gaffe in calling Java an interpreted language or whatever (he also called Flex a language and a framework, when the language is action script right?) it's entirely irrelevant.
Anally nitpicking at that sort of thing does nothing to further discussion, and I hate to see it here so often.