Looks like the AppleInsider copy and paste job forgot to include the Next Web update with a clarification by Mr. Margolis:
"Update: In a comment, Michael Margolis clarified the UI and the elements Steve Jobs took issue with:
The new UI shouldnt come as a surprise to anyone. There is a clear effort at Apple to make everything match the look and feel of their popular iOS products starting with Lion and increasing momentum with Mountain Lion.
To be clear he didnt like the original grid. This was before the iPhone was popular and before the iPad even existed.
Given that the iPad is far more successful than the AppleTV, migrating the AppleTV to look more like the iPad was probably a very smart move even if some of the users of the old UI dont prefer the new one."
Oh, there you go - all this insinuation that Apple design is going down the tubes without SJ is rubbish.
Actually what is rubbish is the insitance that a vast number of apple's user base who are despising the inane iOS-ification of pretty much anything apple, resulting in some pretty bad ui choices -with the atv exemplifying this- are somehow against apple, or seriously misguided, or behind the times, or whatever...and the short sightedness by apple's management thinking that if they make everything look like iOS, regardless of the requirements of the appliance they make, they will sell more. They will sell more in the short term but in the long term they 'll dilute so much of what apple is about, pushing the limits of innovation and design for consumer products as well as NOT pandering to immediate market expectations that it will cost them dearly.
Apple doesn't have to be a boutique tech manufacturer like they used to, but they can't either be an everything to everyone manufacturer as they are aiming to be now. The brand will go to shit if everything looks like ios (which is also starting to date) eventually. There is a fine line between uniformity of style and banality. In the case of the atv uniformity to ios means interfaces that are neither very functional nor very well designed. Is that what post SJ apple is aiming at? No matter how much Margolis sugar coats his bitting and revealing comments, it takes a stretch of the imagination to consider this a smart move.