Does the reporter honestly think that he hated the stylus?. Of course not, he just realized that it was not practical at the time, it was not practical to carry pounds of extra weight for using stylus as you need a backplane active matrix that consumes battery all the time.
In the video you see Atmel people drawing and the enormous lag it has, this was unacceptable for Jobs of course.
I made my own homebrew software for the DS lite that used the stylus, for instant(no perceptible lag)sketching, with antialiasing and 3d. It worked very well, but after a month of using it, the screen wore out because the screen is resistive and plastic. A little expensive note pad!!