Remember, Steve Jobs was touting what he had to sell. His comments about 7" devices is also frequently taken out of context. Remember, it isn't just about an extra 0.9". It is also the 4x3 aspect ratio compared to the narrower 16x9 ratio of the 7" Android devices.
Yes, I understand that Steve may have later decided that a mini was a good product to offer, but there is a reason when Apple introduced the tablet computer, they did a LOT of market research and a lot of effort went in to good design, and they believed that the full size ipad was the ideal size for use, balancing portability with productivity. They could have introduced any size device they wanted (iphone, after all, is TINY and has the same basic hardware) but there is a reason they chose 9". Jobs wasn't just defending some arbitrary size that they had on hand to sell--a lot of research and testing went into that choice.