I think people really make far far too much of that "sandpaper your fingers" quote from Steve Jobs. It's crystal clear if you listen to it in context, that the whole thing was an argument about sales, and not about product feasibility at all.
I don't have it handy to check, but the way I remember it, he was talking about how the other manufacturers were coming out with 7" tablets and that the reason for it was pricing and product availability as opposed to a design choice.
Yes, the part about the sandpaper does suggest he was dissing the whole category as unworkable, but that wasn't the chief point he was making. It was more about how the other manufacturers were making 7" screens because that's all that was left in the supply chain and to not let them fool you into thinking that they were making 7" devices because they were inherently better at that size.
I too, think people make too much of what SJ said. He was selling a new device and Apple didn't have a 7+ inch device at the time. It would be out of character for Steve to enter into discussion about the pros and cons of a device Apple didn't make. Specially the pros. Nobody cares, really. At the time Apple opened up a market on the back of which another market has grown. Now Apple (we believe) will enter than new market.
And my wallet is open - I have already officially given one away as a delayed birthday present!