Actually, if you pay attention to what Steve Jobs said, he qualified it with a lot of reasons why he thought a bigger phone and smaller tablet were a bad idea. Most of those reasons were addressed in the design of the new products.
It should also be noted that Jobs was never shy about changing his mind and direction. People read that he was stubborn and passionate about his ideas and have somehow translated that to inflexible and obsessed. Inflexible obsessed people do not inspire a company to rise to the top of the tech industry.
You can pretty well expect that if the industry proves that a market exists, and Apple decides it's a market they want to be in, that nothing said in the past will stop them; but it will probably influence on how they execute, as it did with both the iPhone 5 and the iPad mini.