Lol..that's not what he said.
He said (with paraphrasing), "PC's are like trucks, and most of don't need a truck. Trucks will always be around, but for most us (most of the time) we don't need one." I completely agree with him. I am a developer and anytime I am not working, I could do everything I need on an iPad (not a pc gamer).
If Steve really believed that wouldn't the iPad have been designed to run all on its own instead of requiring a desktop or notebook to function? If anything, it should be a dock to the iPhone, but it cannot because it needs to be docked itself. I see no function in having a monitor/keyboard dock for the iPad when I ultimately STILL have to plug it into a Mac or PC with its own monitor, keyboard and larger hard drive.
What I CAN believe is that Steve thinks "desktops" are dinosaurs and so eventually the iMac will be gone and all you will have are notebooks and possibly a "professional" tower like the Mac Pro for the few professionals out there that Apple might still support (I emphasize "might" because their support for professional features and software seems to be sliding in recent years and you'll note how the Mac Pro is getting to be terribly out of date and the price is definitely way too high for what you get a this point). Instead of seeing updates to Final Cut Pro, Steve has recently talked about an update for a "consumer" version. I recently bought Logic 9.1 for my Sept. era 2008 MBP and I'm using both Firewire 400 and USB 2.0 ports to connect a Midi-Man and Pre-Sonus to it (definitely just a home studio setup with 3-4 connected instruments at any given time), but I'd need a FW800 to 400 adapter to even use it with a newer MBP). Will Logic 9.1 get updated to Logic 10 or will they just update Logic Express to 10 and Garage Band and figure "good enough for the consumers who represent 90% of our market" and say the heck with regular updates to their pro products?
I'm just afraid that Steve is looking with wide eyes toward the masses with phones and pads and iPods (i.e. smart computer gadgets) instead of "computers" which to me are still desktops and notebooks running full versions of the operating system. Heck, a netbook is powerful enough for "daily use" of mass consumers who aren't playing games and I don't see Apple offering one of those as alternative to the iPad for those that only need ONE computing device (i.e. again you have to dock the iPad to an actual "computer" to activate/update it). I guess he's hoping you will buy a Macbook AND an iPad and then just not use the Macbook very much??? I just don't get it. They could have had an iPad with a larger hard drive option that doesn't need docked to anything or that could at least dock to an external hard drive. But I guess it would have memory problems since it's pretty limited at 500MB?
Frankly, I hope this assessment is wrong. I think OSX is still the better OS "overall" (gaming excepted at the moment, especially given Apple's limited GPU options) to Windows or Linux, but if they drop the ball by putting all of their resources into iPhone OS, it will eventually get passed up in the future. Windows7 is already a big leap forward from the dysfunctional Vista launch. The sad part is that Apple clearly has the monetary resources to hire enough people to keep both divisions running full steam ahead. Steve implying that resources are being funneled into the iPhone "this year" is a sorry excuse for a company that at least briefly passed up Microsoft in monetary gains. Hire a couple dozen programmers and a few more hardware designers and Apple wouldn't be short and wouldn't have to make excuses. But then perhaps it's all part of a plan to eventually (in 5-10 years?) to eliminate those lines and replace them with a "more powerful" iPhone OS? Some would say that's crazy, but some days I think Steve is pretty far out there himself in his "vision" for the future. Having a huge hit in the iPhone probably only encourages him to keep going in that direction.
Personally, I still use my two desktops 80% of the time and my MBP gets used mostly for video editing and now music composition (the tiny netbook I got cheap from Dell gets used for trips). Daily surfing duties are done by a rather "old" (but updated) PowerMac and it's "good enough" for those things and even runs my whole house video/audio system just fine as well (the PC and MBP have to encode the videos, though as the PowerMac is too slow there). I don't see this situation changing any time soon. I don't want to use a tiny screen and trackpad or even a touch screen to surf. It's uncomfortable and I have some carpal tunnel type symptoms as it is. I need a large ergonomic setup to ease symptoms, not adding "texting thumb syndrome" to the list of my ailments caused from the computer age (i.e. I don't even use my iPod Touch most of the time for any kind of surfing, etc.; it gets mostly used as a high-tech remote for my whole house system or playing music on the go). It's just too small and uncomfortable for more than just short sessions and the iPad won't fit in my pocket so I might as well use a fully functional netbook (which also cost me half the price and with a lot more memory and storage and even a camera!)