Whether you consider it "free memory" depends on what you really mean by "free memory". If you mean memory that was totally wasted because the system couldn't figure out any way to use it, then you should not consider it free memory. If you mean memory that's available for use should the system need memory for something, then you should consider it free memory.
Personally, I think the concept of "free memory" should simply be banished. The way modern operating systems manage physical memory just doesn't create a category that can sensibly be described as "free".
In particular, the following mindset is completely wrong: "If there's free physical memory, then I don't need more RAM. But if almost all of the physical memory is in use, then my system could benefit from more RAM."