Whether or not it was scrapped when he first came back, R&D doesn't seem like a new thing for Apple.

For example, I remember coming across someone working on touch R&D for Apple: http://murderandcreate.com/

From the page:

"In 2007 I started working in research and development at Apple on multitouch hardware. There I spent my time inventing and patenting new touch technologies. Now I lead the Human Interface Device Software Prototype group at Apple."

I am confused: I believe they still have a research lab in Austin that does machine learning (among other things). I also know folks who have interned doing computational linguistics at Apple.

Yep, Apple had the Advanced Technologies Group. Jobs shut it down partly as a cost savings measure and partly to focus Apple on the NeXT frameworks as its long-term technology foundation.

I can't say I disagree with not having dedicated R&D. The notion of having an R&D department is stuck in the 1950's where the geeks and the worker bees didn't mix. Everyone should be able to and be encouraged to innovate.