i've always been told that free motion means you are manouvering the machine or quilt to stitch- it is not a (computer generated) design...so, if long arm quilting- you take hold of those handle bars & guide the machine you are (free-motion) quilting---you may be following lines but you are still guiding/controlling the machine- same with quilting with a domestic machine- if you dropped the feed dogs, put on a (hopping foot) and are manouvering the fabrics you are free motion quilting---if you are programming a design on a computer/guidance system- and pushing a (start) button and letting them machine stitch out the design you are not free motion quilting.
so you can free motion with marked designs, stencils, panto's, ect. that's how it was explained to me way back when...