Just based on the Linus quotes, I think he's right.
The kernel did what it was supposed to do back in 1991.
What is the "desktop" supposed to do?
There will never be unanimous agreement on that - every user will have different needs and preferences - and so desktop developers live in constant denial, believing they are the only ones whose preferences are relevant - i.e. they know what's best for users - and blaming others for their own failings.
I'm not a Linux fan, but I give Torvalds' +1 for his response (and knowing the value of "not breaking stuff").