Free Market Solution = Blocking (If you dont like it dont use their free service)
I don't think that is an accurate representation, the entities involved are charging a significantly higher termination rate that traditional carriers are forced to pay due to government regulations. Google is claiming that they don't need to abide by those rules because they are not a carrier. Even if that argument is true, the Google Voice service (a la "web application") must be using underlying service carriers to provide their service which more than likely do have to abide by those rules. The Google Voice service is not free, but I don't really see how that plays in to the situation one way or the other.
This is by far not a new issue, it just now has the Google name and scope and Google's quite public stance on other neutrality issues driving it to the forefront. If regulations and or clarifications are issued, they will most likely extend beyond the current "Google" situation.
Back to the underlying issue, the abnormal rates charged for some destinations. Technically, in the end, correcting the root problem should erase more regulation lines than it will add. This is already not a free market situation as the "alternative service providers" such as the conference call companies are shielded from the market by the government rules which force the traditional companies to pay abnormally high termination rates.
A quick fix today more often than not means you will just have a bigger low tomorrow.