There are a few things at play here:
1 -- Just because Steve Jobs said it, doesn't make it absolutely true.
2 -- The comments I found were made two years ago, a lifetime in technology.
3 -- Make no mistake, the primary reason Jobs was dismissive of mini-tablets in 2010 was because Apple wasn't making them.
Finally, you said, "Theres no point, if I want something small I might as well get an iphone, and If I want something large I'll get an ipad. There is no in between." This is almost exactly what the general opinion of tablets was before the iPad. "Oh, I have my smartphone for small things and my laptop for big things. There's no room in the market for something in-between." Apple proved that there was a market for an in-between -- or maybe they made the market. I don't really know or care how it all happened, but I know that it could definitely happen again.
