It depends on what your model is. Compared to the average person, he's more fit, but the average person is rather unfit, so it's a poor comparison.
I think 'out of shape' out to be an objective measure, not a relative measure.
And you would be wrong. It's completely subjective. There is no quantifiable definition of 'in shape' other than fat %.
I'd also like to suggest it's possible to be "mildly out of shape" and active. For example, if he was "out of shape" and recently started working out.
On the subjective lines, it's possible to be out of shape for certain activities due to the musculature you've built for the activities you do frequently. If all you do is bench weights, you'd be out of shape when you go to run a mile.
I'm like 8-10% body fat if I calculate it (electronic things say about 13%), would you consider me "in shape"? I wouldn't, not in any sort of normal means (running, lifting weights, whatever else).
This is not a way to determine someone's fitness or physical health. Body fat percentages are highly misleading.