Why do people keep saying this? Do you actually not understand the difference between a stylus that has no other purpose than to drive primary input instead of touch, and a multi-function drawing tool that nothing to do with primary input?
Exactly.
The first part of the comment was kind of correct. Jobs initially wanted to call it the Safari Pad and really focus on the internet portal of it all. But that didn’t reach the final product because even in version one it could do a lot more than just run Safari.
As to the “stylus,” Jobs was talking about PHONES that were using little plastic styluses to operate the microscopic interfaces of non-Apple UIs. THAT is what he was talking about being a fail, for very obvious reasons. Poking at tiny buttons with a plastic stick is not optimal.
But the Apple Pencil is a VERY different thing. It’s a virtual paintbrush. It isn’t intended to run the interface. The stylus on a phone was a compromise that allowed phone makers to get away with not designing mobile specific interfaces. Apple Pencil is an elegant tool for creating art.
So yeah. That whole comparison needs to die an ignominious death. But it won’t. Someone is absolutely posting that exact comment somewhere on MacRumors right now.