Actually, from watching and listening to Woz over the years, I'm not at all certain that's what he understands.
Apple's leadership over the years has eschewed Procter & Gamble-style focus groups and other conventional marketing analysis in favor of a more visionary approach. Sometimes that works brilliantly; sometimes it flops, especially when the vision gets ahead of the technology of the moment (as in Newton, and the first-generation Macintosh for that matter).
But it basically boils down to, "Let's make stuff we ourselves would want to buy." And Woz is just manifesting that same ethic, only from the cuddly retro-geek side of the spectrum rather than the visionary metrosexual side.
Don't get me wrong, I'm mostly loving the stuff that results and am not saying "visionary metrosexual" in any derogatory way (heck, I even liked my Newton), but it still comes down to executives playing to their own echo-chamber, and Woz is doing the same thing. When iWatch comes out, it's entirely possible Woz will opine that he prefers his nixie-tube watch with its tuna-can bulk. Different strokes, and different visions of the echo-chamber-as-market.
