No, you're completely wrong, see my post on page 1. What he said was that 10 inch was the minimum size to make great tablet apps :
That means he would find the iPad Mini to not be a platform where its possible to make great tablet apps.
People are always so quick to rewrite what Steve said. Good thing the Internet remembers quotes. Don't rewrite history, Steve wasn't always right about everything! Steve is allowed to be wrong.
As even you have said, he also said Apple would never produce a video iPod.
Steve Jobs was wrong about a lot of things (G4 Cube, Lisa, etc.). And it does appear from the Samsung testimony that it did take some convincing before he signed off on it. I believe it was Eddy Cue who bought one of the 7" Android tablets in 2010 and concluded there could be a market for them. I've also read that the push for the 10" screen was to differentiate it from the iPhone. As it was, people claimed in 2010 that the iPad was just a "big iPod Touch." A 7" or even 8" device in 2010 would just have reinforced it. Instead, Apple got developers to write dedicated tablet apps, which to this day Google has struggled to do for Android, despite its significant market share.
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It's not so much that Windows is a closed environment, but MS's monopoly creates that type of environment. Corporations using Windows also use MS Exchange, Access, Server, Office, Internet Explorer and the like making all but easy for other companies to get in and mix into the environment. So in a way Windows is considered "Closed".
Any company can take Android, customize it however they want, and put it in their products to sell. You can't do that with Windows. First of all, Microsoft charges a license fee, and second, they don't allow you to edit the code.