This really struck a chord for me. What I got from it was that many people try to build some form of success on pure IQ and get frustrated when they are outmuscled by knowledge in the market.
I think that cuts back to Xerox PARC as well - by focussing everything on IQ, they created the knowledge that allowed Apple to be so dominant.
Where the talk falls a little bit on the obnoxious side is when Mr. Kay makes dismissive statements on how they created what others sold, just 10 or 20 years earlier. I think that ignores the enormous amount of work you have to put into connecting this knowledge that they worked out to the current state of mind that people are in.
Xerox PARC may have invented the future, but the failure of their parent company to bring that future to market shows that even with that knowledge at hand, you have quite a bit of way ahead of you.