Steve Jobs didn't really know anything about cabinetry, because using plywood / MDF in places where it won't be seen but which would benifit from dimensional stability is absolutely common and there's no reason it shouldn't be.
You might be missing the point of the quote. He's not talking about whether it is commonly done. He's talking about the mentality that justifies sacrificing the aesthetic and artistry, in favor of things like "dimensional stability". He is giving a reason why it shouldn't be done, and people can disagree about whether the reason is a good one.
You might be missing the point of the quote. He's not talking about whether it is commonly done. He's talking about the mentality that justifies sacrificing the aesthetic and artistry, in favor of things like "dimensional stability". He is giving a reason why it shouldn't be done, and people can disagree about whether the reason is a good one.