I guess it did free him, in the long run, and it looks like he'll be even more of a straightforward villain in The Avengers. I mean, I felt bad for Loki when he found out he was "adopted" (or as he saw it, stolen from his homeland to be used as a puppet of diplomacy), and I thought he was going to actually conspire to help the frost giants, but then... no. Still all about Odin. I'll grant that he's supposed to be an agent of chaos and all, but it came off as less chaotic and more like the moviemakers just what to do with him.