I guess when I read it I didn't think "hardware is free as in you'll be paying for a contract of service where the cost of that service includes the cost of the hardware".

I mean, if we're to be able to redefine 'actual' costs like that, maybe my house is free... it's just included in the cost of my bank sending me a statement every month.

I do see your point, though: it definitely seems that way, but surely nobody can argue that the production cost of one more piece of hardware is more 'free' than that of a piece of software.