If you read into the blog post this links to, you'll find that is only the opening argument, not the whole argument as you say.

My first paragraph reacts to that... and to be honest, I'm still going to say isn't that controversial.

When most people think of Open Source, they're not thinking about the OSL, they're thinking colloquially (as in the source being open to the public). I suspect he was using that wording colloquially as well - whether that was a slip up or intentional, I don't know, but considering he goes out of his way to let us know about the way Grayjay's licensing works, I don't think he's trying to hide anything by it.

The rest of what I said afterwards was my first reaction towards the rest of the blog, and I stand by it.