Also, once the App Store opened, I think we would have seen a zillion straightforward ports of applications that did not work with a finger at all.
Now, times may have changed. Perhaps, customers are savvy enough to see which apps work nicely with fingers, and which require a stylus.
On the other hand, there are a lot of people who wonder whether Microsoft makes the right choice with Surface, giving developers the choice between TUFKAM (The UI formerly known as Metro) and supplying straight ports of Windows apps.
Steve also said that native apps weren't needed because Web apps would be just as good.
When i hear stylus I think of a tiny plastic pen that exists because interface designers didn't want to know how to make finger friendly ui and hardware. At the time there had been many devices (anyone remember the ipaq?) where users were stuck in tap the tiny menu options with a plastic stick hell and I think that's what jobs was rightly slamming.
But a true pressure and tilt sensitive pen in addition to touch is a fantastic idea. Browsing, viewing, navigating are much better done with touch but writing and drawing can be better with a pen. There's a reason the masterworks of art aren't all finger paintings. Sometimes an intermediate tool is best but only in the right context.
Are you sure about that? My completely unscientific anecdote is that people buy the galaxy note for it's size, but end up never using the stylus at all. I see a lot of galaxy notes in the wild, but never seen someone who actually used the pen. People usually tell me they tried, found it terrible and gave up.
Are my anecdotes too off? Are you guys seeing something different? Maybe someone has some good data on this?
That said, one of the things I really liked about the iREX Illiad (RIP) is that it used an honest to god Wacom stylus digitizer. That can capture tilt, pressure, and doesn't require a conductive connection between your finger and the tip. I've argued for a while that blending the two would provide a really useful combination.
The Wacom only allowed single touch so using capacitive touch as 'modifier' keys would allow for combined intent+action type things.