What Steve actually said, was:
Originally Posted By: Book of Jobs
We’ve been there before, and intermediate layers between the platform and the developer ultimately produces sub-standard apps and hinders the progress of the platform.

The only important and relevant part of that, is the final phrase:

hinders the progress of the platform.

I'm familiar with that phrase already, from the Linux world. What it means, is that Steve wants native apps, where the iGadget is a full citizen target, rather than something written for some other system and then ported over.

I have apps on my Palm like that (ported over), and they stink.

But most importantly, Steve wants people developing for the iGadget, not merely porting generic apps from some other platform.

If the iGadget isn't the primary platform, then it becomes commoditized, and that's not something a hardware company looks forward to. Witness the IBM PC.

For better or worse, that's the issue here.

Cheers