I am reading Hatcher's book on Algebraic topology. Here is a paragraph about free product of group.

I think the last line should not be "a surjective homomorphism", but an injective one, since the free product group is smaller than direct porduct group. Am I correct?
Also, is the homomorphism $G*H \to G \times H$ simply inclusion homomorphism? I treat $G*H$ as a subgroup of $G \times H$
No it is not, you have a surjection from $\mathbb{Z}*\mathbb{Z}\rightarrow \mathbb{Z}\times\mathbb{Z} $ whose kernel is the normal subgroup generated by $xyx^{-1}y^{-1}, x,y \in \mathbb{Z}.$