When Steve Jobs said that, he was talking about a stylus as a main or even only input device. And he is still right about it. The Apple Pencil for the iPad never was a main input device but an alternative.
Touch input needn't be the main input to a laptop with a keyboard and a trackpad...
That wasn't the only time Jobs trashed a category Apple didn't currently have annon-sale model for, but was actively developing; he also slurred 6-inch Android phones as "Hummers", and mocked the 7-inch Android tablets as "too small" a little while before Apple launched its iPad Mini.