In context Jobs was talking about getting them, putting them away and losing them.
Oh, a stylus, right? We're going to use a stylus? No.
Who wants a stylus? You have to get them, put them away, you lose them, yuck. So let's not use a stylus.
We're going to use the best pointing device in the world; a pointing device that we're all born with - we're born with ten of them. We're going to use our fingers. We're going to touch it with our fingers. And we have invented a new technology called multi-touch..."
The important part of the quote in this context is that Jobs was obviously referring to the stylus being the primary input device for the iPhone being unacceptable.