Sounds more like Jobs was drunk than the guy who e-mailed him, Jobs has less coherence.
It is a possibility.
Thing is, Apple does well because it's seen as "cool", not for any technical merit. The direction they're taking the iPhone/iPad OS is starting to lose them that coolness. It's all but gone in the IT world already where most folk are power users, and you can't be a power user on a device with such hefty limitations.
The more they clamp down, the more they'll erode their customer base until they hit a tipping point where they end up losing massive amounts of sales.
I suspect that tipping point will either be if they start enforcing a site-by-site blacklist on the devices (which might be too much, even for Jobs) or if they initiate this absolutely ridiculous advert plan they've cooked up where you're forced to pay attention to an advert to make it go away, with the advert interrupting whatever you're doing at the time.
I don't want to see them make these mistakes, as competition is good, the customer wins out with it, but right now, there's not been any innovation in the iPhone OS since it's release, which Android overtook with the mass release of 1.5 last summer and has improved upon with every release.
2.2 just blows Apple away. Things like an iTunes-a-like that works in any browser that will have your phone auto-download over wireless from the internet any app or song you download. No additional software required. There's been decent voice recognition since 2.1, with improvements to that in 2.2 that works for any text box on the phone. Something like Google goggles is just a dream on the iPhone.
That's without getting into the UI stuff like widgets. Really, there's no competition on a technical front and from a new user's perspective they're both identically easy to learn to use, so as soon as Apple loses the "cool" factor they're toast.
