Look in the 1998 video (http://youtube.com/watch?v=dmmxVA5xhuo) around 4:30. You could perhaps argue that's 'scaling' not 'zooming', but that's a very pedantic position, and not one I personally would entertain.
http://www.youtube.com/watch?feature=player_detailpage&v...
So, tacking on a "BUT ON A CAPACITATIVE SCREEN" got Apple the patent?
The patent system is so broken.