https://www.theregister.com/2006/02/09/apple_readies_video_i...
Clearly wasn't a very accurate source. Unless apple did actually consider adding it at one point.
Even with the iPad, the first interface ideas were to just have a big iPhone interface with no accordances to the larger screen. (Source: various interviews of former employees on the Debug podcast).
And I worked on the Pen Mac about fifteen years prior, so with that and Newton, Apple was working on the concept forever.
As I understand it, a semi regular dinner guest that worked at Microsoft, the husband of his wife’s friend or something like that, came around with a Windows tablet PC after they hit the market and was talking about how great it was and Apple didn’t have anything like this. Jobs saw it for the crap it was (touchscreen Windows was pretty bad back then) and to shut this guy up, put together a team at Apple to work on developing tablets. This was the project that would eventually spawn iPhones and later, iPads.