In some sense I think he might have a point.

I think the iPhone is a lot like the Wii console. Touch screens on phones are somewhat like WiiMotes, it's a novel approach but I do think it's questionable whether touch screen technology has staying power.

One of the biggest signs it is a fad is the inability of competitors to gain significant traction with similar devices. "WiiMote" like accessories for other game consoles has largely fallen flat, and likewise there hasn't been a significant touch screen competitor to iPhone.

Whether you agree or not, just looking at the market trends I don't think having a touch screen or not is going to be a key differentiator in the next big smart phone.