I thought that it was meant to be a sad, ironic reveal. Ernie believes Tully's disposition is the result of drunkenness, but the "freeze" indicates that there might be something more fundamentally and tragically awry.
When we see Tully wandering the streets looking for a match (gotta love the literalism of the has-been boxer still desperate to find a match) we assume that he is drunk because we have seen him in that state so many times before. Ernie assumes the same thing, and tries to avoid him. I interpreted the "freeze" from Tully's POV as an indication of brain damage. As a poster mentioned earlier, this is an all-too-common cognitive malfunction among long time boxers. All the world sees Tully as a washed up drunk who blew his last comeback, but he is really suffering from a paralyzing cognitive disorder resulting from the sport.
A couple of people mention that Tully is drunk in that final scene. But we don't actually see him drinking. He invites Ernie to have a drink but, as I recall, there is no explicit indication that he has been drinking up to this point in the evening. It is just an assumption (albeit a natural one) that we make. One, I think, that is complicated by the reveal of the "freeze".
That last bout with the Mexican boxer was beyond brutal. The Mexican boxer is suffering from serious internal injuries (as exhibited in the motel room scene) and the two men are, quite literally, beating each other to death while the crowd and managers (at least Tully's manager...the Mexican boxer's manager doesn't seem to have travelled with him, sound familiar?) cheer on. Tully is lackadaisical in the "celebration" scene, and doesn't seem the same for the rest of the movie. Everyone wants to dismiss him as a drunk and a loser, but really he is the wounded refuse of their profit.
I think that it ties in a lot with the theme of exploitation in the movie. The boxers are exploited in much the same way as the low wage farm workers ("I worked all day and, after they took everything out, all I got was 5 dollars")
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