Yes, you're right, he said the Germans were the favourites because they were playing at home and had had great results at the AO. But he was just stating the obvious. I don't think the whole stuff with Santoro was a tactical move either to make the opponents feel overconfident.
(But well, being an Argie fan may be a little bit distorting, everything seems so harmonious and transparent in the other teams in comparison!)
As for this tie, I wanted to agree with you, but since Seb isn't playing, I don't fancy the chances of the French team anymore!