Hmmm, late posting, but better late than never! :-)
Assuming your interviewer knows his stuff, this is really the sort of question that an interviewer asks you in order to do the following:
- Test your knowledge.
- Test you with a statement that he knows is incorrect to see how you will react to it, and how you will approach answering it.
- Engage you in a debate to get you to relax and talk freely about a subject that you hopefully have some familiarity with.
A good interviewer will achieve all three, while the not so good interviewer may simply be looking for ways to try and trap you because he's asked to interview too many candidates.
At the end of the day, if you don't know the answer or understand the question, you are better off saying so in the interview, and if you disagree with a statement, look at it as an opportunity to relax and engage in a discussion rather than simply answering questions during the interview.
And for what it's worth, the answer is that the method described IS a generic method, regardless of whether some parameters are of a fixed type or not. The proof is in the declaration itself where the generic syntax effectively instructs the compiler to make allowances for the generic arguments.