Yeah, Jack was aware of some of the Doctor's granddaughter stuff. Everything that was on file at UNIT, at least, plus a few things he'd been able to glean via other means. Enough to be aware that the Doctor was no better at parenting than he was.
"You were adorable," he said, grinning a bit at the memory. He'd deliberately avoided actually speaking to any of the Doctor's former incarnations, but he'd managed to watch him sometimes from a distance, in various regenerations.
He quirked an eyebrow at the Doctor's last comment. "What were you hoping for?" he asked, and chuckled. "They're hardly going to give you the TARDIS!"