At the time, you effectively could not buy a touchscreen device without a stylus being required. Nintendo DS, Palm Pilot, Windows tablet, etc., it was a bundled experience.
Letting you use not just one, but multiple, fingers on a touchscreen without the need for a stylus was a sea change.
His comments on styluses should be seen in light of the technology of the time (Newton/Maemo/Palm OS/WinCE etc) whose input was stabbing at a resistive screen.
(That's not to repudiate finger input being superior to pen for many interactions but styluses of 2019 use vastly different tech to those of 2007.)
I think his comments are general, not about the technology of the time. He's arguing that direct manipulation is better than not-that. That's been a central tenet of UI-stuff for a very long time.
Meanwhile, he was overseeing the development of the 7.9 inch iPad Mini, which wouldn't come out until late 2012.
[0]: https://www.itproportal.com/2010/10/21/steve-jobs-wrong-abou...
He said it shouldn't be the primary method of interaction with a tablet...
I imagined it would be for that usecase. I didn’t understand the “who needs a stylus” statement, but I guess that is for the iPhone.
He was commenting on past tablets that were meant to be used with a small stylus -- and the interface was totally unfriendly (and sometimes unusable) for hand touch.