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.
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.
There’s no contradiction here. Jobs’ point was about the MAIN input method. A touchscreen that requires a stylus as main input method still is a terrible idea. The Apple Pencil is meant for alternative and creative input, something you can’t do well with your fingers.
Please, leave that reddit-esque “iSheep”-type of comment out of here.