All that this demonstrates (to me, at least) is that there was apparently some cognitive dissonance left over in the minds of consumers that Apple was some sort of 'free love' all-inclusive brand. Maybe 10 years ago when they were still trying to carve a niche by flooding schools with cheap computers and software, but those days are long gone. Apple is now on the same retail (top) shelf with Banana Republic and Pottery Barn, a significant part of the reason the brand is popular is that not everyone can have one. There is no reason for their product to be 'cheap', in price or in appearance, and that is right where netbooks are: low cost, low margin, low satisfaction.
Tim Cook is perfectly right to say this plainly, and you guys calling him a jerk (among other, less appropriate epithets) is baseless. How dare he be honest!