I'm not sure what Steve Jobs was basing his comments on, but he seems to think that no one is interested in subscription music. Regardless of the fact that I am a huge fan of subscription music in and of itself, I think he's missing the point.
Subscription music services like Rhapsody don't JUST "rent" music, you can also purchase it forever if you want to. I burn a few CDs a month from Rhapsody and the per song cost is cheaper than iTunes. Subscribing doesn't mean you can't own whatever music you want, it means you get more music. Who wouldn't want that?
So while I do buy songs outright sometimes, mostly I just load up my MP3 player with as much music as I want, I stream as much music as I want, etc. I can listen to any album or song anytime in its entirety. I probably listen to music an average of six hours a day between my commute, the office, and on weekends and I never run out of new stuff to listen to. The thought of using a service where I have to buy every song I listen to for .99 cents seems ludicrous to me now.