If you want to nit pick meanings, fine, though to get stuck doing so misses the larger picture. To most people, Android means a phone, running Google's Android OS, and Google's Android applications such as the marketplace, Gmail, Maps, etc. The marketplace, maps, Gmail and other common apps that come with every Google Android certified device are not open.
The reason I make a distinction between open and closed here is that yes, on Linux, almost the entire stack is open, from the proper Linux kernel, to the Gnome/KDE windowing environment, to the browsers, e-mail apps and other common programs bundled with a typical Linux distribution.
Yes, Android is functional without the closed bits Google doesn't ship, but only functional to engineering minded people who need a good OS to build their own mobile platform or device.
One interesting part that changed from open to closed is the handling of AGPS location caching. Remember, that same thing everyone blew up at Apple over last year? Yeah, Android does the same, and the open code revealed it, and the complete hiding of it inside some closed location API Google provides with Google Certified devices.