The thing is, Apple had 7" prototypes. Apple produces at least as many devices/variations they don't release as they do release. At least that was the norm up until 5 years ago when I was last in the direct loop.
My point being that Steve is trying to make it sound like there won't be any apps available for the tablets when they come out, which is a pretty dubious claim.
But he's already right. 7" Android tablets are already available, but there are no Android tablet apps.
Android tablet apps won't come until Google release a tablet version of Android - and that won't be until some time next year.